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I want to buy a vacation home, but first must sell my

Customer Question
present vacation home which is...
I want to buy a vacation home, but first must sell my present vacation home which is in a slow market (i.e., it may take two years to sell). Are there tax consequences if I can effect a trade of properties with or without boot being paid by either party?
Submitted: 2 years ago.Category: Tax
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1/22/2016
Tax Professional: Robin D., Senior Tax Advisor 4 replied 2 years ago
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 18,411
Experience: 15years with H & R Block. Divisional leader, Instructor
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Hello

If you trade your vacation home for another property, no cash just properties, then you will have to report the sell and if the other property is valued higher than your property, you will pay tax on that gain.

The sale price will be the value of the property you receive and the difference in that and your cost (plus improvements) will be gain or loss. If loss you cannot use it because it is personal use property. If gain you pay tax. No exclusion of gain on a vacation home.

After you view my response, please post below if you need more information or if you need no further clarification a positive rating is appreciated.
I know rating takes an additional step and I truly appreciate it when you take the extra time!

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Tax Professional: Robin D., Senior Tax Advisor 4 replied 2 years ago

Please advise if you need more information about using the method you asked about to replace your vacation home.

It is usual to post a reply.

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