Skip to main content
August 11, 2021
Question

Capital Gains from Selling House I have owned for 2 years

  • August 11, 2021
  • 2 replies
  • 0 views

I purchased a 2nd home about 26 months ago.  It was not a rental, just a 2nd home for my family to use for vacation. I am in the process of selling it.  Can I use the profits to pay off my main home's mortgage without paying capital gains? I am hoping the profit is actually more than the payoff on my original mortgage. What can I do with the remainder to avoid capital gains? Thanks in advance. 

2 replies

DoninGA
Employee
August 11, 2021

There are no exclusions from the payment of capital gains taxes on the sale of a second home.  How you use the gains from the sale of a second home is not relevant.

August 12, 2021

your mortgage does not affect the gain just the net proceeds you get.  gain = sales price less sales and closing costs less your tax basis in the property