Capital Gains

TC1167 — Wed, 11 Feb 2026 09:52:32 GMT

I have two houses one live with a tenant in it. When I sell that house, how do I avoid capital gains taxes?

Re: Capital Gains

TC1167 — Wed, 26 Jun 2024 19:18:47 GMT

* one house I live in the other is a rental

Re: Capital Gains

SwapnaM — Wed, 26 Jun 2024 19:27:10 GMT

Assuming that you have 2 houses & you have a tenant in one of them, which makes it a rental property.

When you sell a rental property, you can take advantage of the section 1031 exchange. Section 1031 of the Internal Revenue Code allows real estate investors to sell a rental property, buy another property at an equal or greater value, and defer paying tax on the capital gains. You are not avoiding capital gain tax but just deferring it.

More information can be found at, https://turbotax.intuit.com/tax-tips/investments-and-taxes/what-is-irs-form-8824-like-kind-exchange/L6UsQp15n

Also if you convert the rental to personal residence, you can take the SEC 121 primary residence exclusion. To qualify, investors must have lived in their property as their primary residence for two of the five years immediately preceding the sale. However, the years as a personal residence do not have to be consecutive.

@TC1167 Thanks for attending the event!

topic Re: Capital Gains in Retirement tax questions

Capital Gains

Re: Capital Gains

Re: Capital Gains