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May 22, 2024
Question

I have a rental property thinking of selling. Gains would be around $100k. If I apply gains to my current mortgage, does it negate any taxes due?

  • May 22, 2024
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1 reply

DoninGA
Employee
May 22, 2024

If I apply gains to my current mortgage, does it negate any taxes due?

No.  What you do with gains is not relevant.  You will owe capital gains on the sale of the rental property.

 

Unless you do a section 1031 exchange by purchasing another rental property, then the gains will be deferred.