Albuquerque Journal (Albuquerque, NM)

Law sets limitations on capital gains tax deferment.(Mature Life)

Byline: The Money James Hamill For the Journal

Q: My wife and I bought a home in Durango, Colo., in 1991 when our children were teenagers. Our original purpose was to use the house for family vacations, primarily during ski season. The kids have since graduated from college and moved out of state and we seldom use the house anymore. We have never rented it and occasionally allow friends to use it. The home has substantially appreciated. Is it possible to avoid paying capital gains tax by reinvesting sale profits in Albuquerque rental property?

A: The tax law allows you to defer paying taxes on gains realized from the sale of investment or business-use property if the proceeds are reinvested in like-kind property. …

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