Capital Gains Tax on Second home.


Does the capital gain include the original purchase price ot the second home? If I purchase a rental property (second home) for 100k and sell it for 200K do I pay on the whole 200K or just the profit?


First and foremost, a second home is NOT the same as an investment property. Good news is that you don’t pay capital GAINS on the purchase price, just the appreciation when you sell an investment property. Second home capital gains are treated differently, but if it’s been rented, it’s investment…..

Answered 11 months ago
Ted Rood
1344 6


One way to offset capital gains tax on investment property (one that generated rental income) is to complete a 1031 Exchange. This can be a really smart move if you intend to take the profits and reinvest them into another similar property. A 1031 Exchange differs capital gains taxes.

Answered 10 months ago

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