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Irwin Law
Irwin Law, Lawyer
Category: Real Estate Law
Satisfied Customers: 6848
Experience:  Lawyer- Broker 30+years - foreclosure, short sale, liens, title attorney.
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My husband and I have a 2nd (rental) home. We are selling

Customer Question

My husband and I have a 2nd (rental) home. We are selling the home. We are not willing to live in the home to avoid capitol gains for two years and will remain in our primary residence. However we are wanting to purchase long term care.Can we use the profits from the sale of the home to purchase ltc (hybrid and/or annuity that converts to ltc) withing a certain timeframe after the sale of the home to avoid some or all of the capitol gains? BTW: we do not currently have a hybrid policy
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Irwin Law replied 1 year ago.
No. Investing the profits from the sale of real estate in a certain type of investment does not avoid capital gains. That is, unless there is a tax deduction for purchasing LTC in and of itself. You can find out about that with a phone call to your tax preparer.

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