ANSWERS: 2
  • Here I am assuming you have lived in the home you haven't sold yet for at least 2 of the last 5 years. If so, you are able to take a personal exclusion of 250K if single and 500K if married when you sell. Any gains over that amount you will owe capital gains tax on. When you do sell, you can take the gains up to this amount and do whatever you would like with them, including paying off the mortgage on your other home. Paula Straub
  • i agree with the first post. the second house can be used as a rent house or a second home until the first is sold. there shouldnt be a problem as long as you lived in the first house 2 years and the gain was within the limits. definitely contact a tax accountant or tax attorney to make sure you do it right. often , folks leave out important info in these one sentence questions.

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