Capital Gains Tax on New Home
Hey BP! I purchased my first SFH less than 2 years ago (May 2019), but am in the process of selling to live with my SO and to aggressively save to pay off my student loan debt from grad school. My house value has increased $60K, but I know that I will have to pay capital gains tax since I haven't lived in it for 2 years. Would I be able to use that profit towards the down payment of a rental property, such as a duplex, and not get taxed? From what I understand, the 1031 Exchange only applies from rental property to a-like rental property, and not from primary residence to rental property. Also, is it smarter financially to use those gains to pay off student loan debt (interests rates range from 5-7%) or buy a rental property? Thanks!