Quote:
Originally Posted by Cdj1040
If you DO invest in a second property and eventually want to sell it you will have to pay Capital Gains tax on any profit unless you buy another property within a defined period.
My neighbor struggled with this, didn't really want another rental property after looking at houses here and just decided to pay the taxes on what he sold in the end.
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I would add that, to avoid capital gains, you also need to pay someone to arrange a "like-kind" exchange. And, you need to pay taxes on any depreciation deductions that you were eligible for during the rental period, even if you didn't take the deductions.