Can I use profit from an investment sale to payoff a home equity loan to avoid capital gains tax?

Posted on December 4, 2009 by admin
mrjoe4jrh asked:


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?

BRIAN
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3 Responses to Can I use profit from an investment sale to payoff a home equity loan to avoid capital gains tax?

  1. Wayne Z says:
    December 4, 2009 at 5:25 pm

    EZRA

    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.

  2. dillon Y says:
    December 4, 2009 at 9:58 pm

    AUSTIN

    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.

  3. Judy says:
    December 6, 2009 at 9:14 pm

    JEROME

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