Sold a 2nd home

[JLB99]

Will have to pay taxes next year for this year’s sale. Just want to be prepared for filing my taxes!

[DanPaul02]

Yes, you will have to pay taxes on the capital gain from the sale of the second home..  You need to calculate the amount pf gain now.   You may need to pay estimated taxes now in order to avoid a penalty for underpayment of 2021 taxes.

[JLB99]

Thank you for your response. I will check into the estimated tax situation. What I was hoping to learn was what deductions I could realize against those capital gains. Can you direct me?

[tagteam]

Read through the relevant section of the IRS publication at the link below.

https://www.irs.gov/publications/p523#en_US_2020_publink100011887