CAN I USE PROFIT FROM AN INVESTMENT SALE TO PAYOFF A HOME EQUITY LOAN TO AVOID CAPITAL GAINS TAX?

I not long ago sole an investment skill with a little distinction as well as if I use this income to boon an home equity line upon my first residence, will I have to compensate taxes upon it?

{ 3 comments… read them below or add one }

Wayne Z May 2, 2010 at 11:44 am

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 May 2, 2010 at 11:46 am

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 May 2, 2010 at 12:03 pm

Yes, you’d still have to pay tax on your investment gain.

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