What Can You Deduct When Selling A Second Home?

How do I avoid capital gains tax on a second home?

Do a 1031 exchange and defer capital gains tax. Named for the IRS Code Section 1031, a “1031 exchange” — also called a “like-kind exchange” — allows you to swap out an investment home for another property of the same type without paying any capital gains tax.

Will I Pay Capital Gains on the Sale of My Second Home?

How do you calculate the gain on the sale of a second home?

Your net selling price is the actual amount of money you receive from the sale of a property. This takes things like sales commissions and closing fees into account. Your capital gain on the sale of your second home is the difference between the property's cost basis and net selling price.

Will You Pay Capital Gains Taxes on a Second Home Sale?

What expenses are deductible when selling a second home?

In addition to deducting the costs of mortgage interest, you can deduct costs for advertising, cleaning, depreciation, insurance, maintenance, repairs, real estate taxes, utilities, and other fees associated with renting the property.

Second Home Tax Tips: What Most People Don't Realize...

What expenses can be deducted on sale of home?

Types of Selling Expenses That Can Be Deducted From Your Home Sale Profit. advertising.appraisal fees.attorney fees.closing fees.document preparation fees.escrow fees.mortgage satisfaction fees.notary fees.

Reducing Capital Gains Tax Using Expenses of Sale | Nolo