Legal Question in Real Estate Law in Massachusetts
selling vacation home
If my vacation home has appreciated 250,000.00 since I bought it, do I have to pay capital gains if I sell it and buy a more expensive vacation home.
Asked on 6/07/08, 8:35 pm
1 Answer from Attorneys
Re: selling vacation home
If you are treating the Vacation home as an investment, you may be able to do a 1031 exchange. there are specific requirements including personal use. However, if not, and it has not been your primary residence at least 2 of the last 5 years, then you can get a exemption of up to $250K as an owner.
Otherwise, you pay a capital gain.
Answered on 6/08/08, 12:47 pm