I recently sold an investment property with some profit and if I use this money to payoff an home equity line on my primary residence, will I have to pay taxes on it?
Can I use profit from an investment sale to payoff a home equity loan to avoid capital gains tax?
21
Mar
Wayne Z
March 21, 2010 at 11:32 pm
Yes, you will have to pay taxes.
The only way to postpone taxes on an investment property is to exchange it for another investment property. The above transaction does not qualify.
dillon Y
March 21, 2010 at 11:53 pm
YES you will.
Sell some stocks, bonds or other capital assets before the end of the year that will generate a taxable loss that can be used to offset the taxable profit from the investment property.
Judy
March 22, 2010 at 12:18 am
Yes, you’d still have to pay tax on your investment gain.