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Originally Posted by JCX5
I have a second home at the NJ Shore. I am contemplating selling it. It has appreciated significantly. Not sure if I would buy another home. How is the appreciation/profit taxed? How do I avoid being hit very hard on that profit?
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Im no accountant but I just went through this a year ago. My first suggestion is if you can afford to keep it rented then DONT SELL IT!
I had a rental property in Miami but live in GA. Playing long distance landlord got to be a little much after 10 years so the the CEO and I decided to sell.
Since it is an investment property, you will have to pay capital gains. From what I remember, 1031 exchange only applies if it is your primary residence.
I had to pay federal taxes and state taxes. FL does not have a state tax but GA has a state tax so they got some of my money on that profit. Feeling like Im about to go postal right now
..................OK, ive taken a few deep breathes...Ok Im feeling a little better. The phrase "it's cheaper to keep her" fits the bill. I apologize if any of my info is inaccurate but that whole experience is something I try not to remember.
Rob_