If the capital gain from the sale of a 2nd home is immediately reinvested in another 2nd home, is the capital gain still taxable?

fbelinne · ‎June 4, 2019

IreneS · ‎June 4, 2019

Yes. The capital gain on the sale of the 2nd home is taxable, even though you immediately invested the money in another home.

The only exception would be if you set the transaction up ahead of time as a like-kind exchange, also called a 1031 exchange.

For information on Like-Kind Exchanges, see the IRS article: Like-Kind Exchanges - Real Estate Tax Tips

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IreneS · ‎June 4, 2019

Yes. The capital gain on the sale of the 2nd home is taxable, even though you immediately invested the money in another home.

The only exception would be if you set the transaction up ahead of time as a like-kind exchange, also called a 1031 exchange.

For information on Like-Kind Exchanges, see the IRS article: Like-Kind Exchanges - Real Estate Tax Tips

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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