Tax deferment on 2nd home

[Mike Hanneman]

I was wondering if there are any tax deferments for selling of a 2nd home and using proceeds to lend to someone for an investment property. 

Do the standard tax deductions apply when selling a 2nd home? Can you roll the proceeds into another property? Home has already been sold FYI.

[Lawrence Stepovich]

Unfortunately it would appear that the traditional capital gains tax would apply here, unless any depreciation deductions were taken while you held the property (vacation rental/AB&B?). 

Generally, if you've already completed the sale and received the payment you wont be able to utilize a like kind exchange to defer capital gains. If not, contact a cpa or 1031 practitioner before closing. Other factors will still come into play as to whether it could qualify (qualified use, use of proceeds, etc).

The new Opportunity Zone tax benefits could possibly be utilized to defer or eliminate taxable gains in your scenario if proceeds were reinvested appropriately (ie. loaned to a friend for an investment will likely not qualify).

Hope this helps