Second home sale
Hi Terry,
We are selling our second home in January 2025. If we don’t buy a like for like home – what are the tax implications… ie capital gains etc.
Additionally what are thoughts on investing the proceeds?
Thank you.
Terry Says
The tax implications have absolutely nothing to do with whether you buy a second home. You will pay a long-term capital gains tax on any gains on sale — since this is not your primary residence. So be sure to total up all improvements — new roof, new kitchen, bath remodel etc — that you’ve done over the years you’ve owned the property.
Since you owned it more than one year, you will pay long-term capital gains on any gains on the sale. The actual rate depends on your tax bracket. Consult your accountant.
And with what’s left after paying taxes, you can do anything you want!
