Capital gains on second investment property?

1 Reply

Hi everyone,

If I had a second residence that was used as investment property for STR , and when I sell, how are the capital gains taxed? Is it similar to primary residence where only above 250k$ capital gains are taxed ?

Thank you

@Chris Klingemann

If it was your primary residence for 2+ years and then an STR for no more than 3 years - then yes, you should qualify for an exclusion, subject to some other restrictions, such as no other residence sold within 2 years, and depreciation recapture tax still applies.

If you never lived there yourself, then full capital gain tax due, unless you apply another tax strategy like a 1031 exchange.