long term capital gains

Forum|Forum|4 years ago
July 27, 2022
1 reply
12 views

if i sell a vacation home that I have owned for over 30 years and buy another home to replace it for more money, how do I avoid paying any capital gains taxes on what I made on the first vacation home?

SoCalGal22

Level 5

The best way to avoid any tax on the sale of the vacation home is to look into Section 1031 Like Kind Exchanges.

You would have to find another Vacation Home in the Exchange that you wanted to buy and there are time limits on this,

but the basis in the 1st property would roll over into the 2nd property and tax would only be paid on Boot.

https://turbotax.intuit.com/tax-tips/investments-and-taxes/what-is-irs-form-8824-like-kind-exchange/L6UsQp15n

There are other options if the vacation home was used as a rental income.

I hope that answers your questions. Please feel free to give TurboTax a call anytime if you have additional questions or need assistance.

Have a great day!

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long term capital gains

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