Just thinking out loud here....and need some better facts.
My house, 100% paid for, I could likely sell for about $1M+ which would give me about 650Kin capital gains....
If I sell I'd like to by two houses to replace the one...one in a cheaper location, i.e. a rural farming community...maybe buy a house for $250K. I'd also like to buy another house in the Carribean and spend upto 4 months per year there...this would probably cost 500-600K.
I know you only owe cap gain tax on your house when you don't roll the profit into another place...so if I took the "profit" from the house and bought the vacation place, and the original investment part (i.e. what I paid for the house in the first place) and bought the new farm...could I avoid most of the taxes?
Any obvious flaws in this plan?
My house, 100% paid for, I could likely sell for about $1M+ which would give me about 650Kin capital gains....
If I sell I'd like to by two houses to replace the one...one in a cheaper location, i.e. a rural farming community...maybe buy a house for $250K. I'd also like to buy another house in the Carribean and spend upto 4 months per year there...this would probably cost 500-600K.
I know you only owe cap gain tax on your house when you don't roll the profit into another place...so if I took the "profit" from the house and bought the vacation place, and the original investment part (i.e. what I paid for the house in the first place) and bought the new farm...could I avoid most of the taxes?
Any obvious flaws in this plan?