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February 29, 2024
Question

Long term capital gains use to pay mortgage

  • February 29, 2024
  • 1 reply
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I live in Texas and just sold a property (a piece of land in a rural area) after owning it for more than 20 years in Florida. If I use the capital gains to pay part of the mortgage on my primary residence, can I avoid/defer the capital gains taxes that way?

1 reply

DoninGA
Employee
February 29, 2024

No, capital gains cannot be deferred in that way.  The only way to defer capital gains is if you use a 1031 exchange for the property.