Does paying off a mortgage on your full time residence with proceeds from a capital gains sale reduce capital gains tax?

[watersric]

Sold property owned for 17 years.  Have capital gains from the sale.  Paid off mortgage on full time residence.  Does that reduce the capital gains tax owed?

[rjs · Accepted solution]

No, it does not reduce the tax on the capital gain. Since the property that you sold was not your primary residence, the gain is fully taxable. It makes no difference what you do with the money from the sale.

[DoninGA]

No.  Paying off your mortgage on your personal residence using the proceeds from the sale of other property has no bearing on capital gains taxes owed on the gain of the sale of the other property.

[watersric]

Thank You