Question on capital gains tax on multi-family sale
Hello :
I have a 2 family property near Boston, MA that I would like to sell.
I was using 1 unit as primary residence for just over 2 years before I had to relocate in mid 2016.
Currently both units are rented out and hence it is considered an investment property. I am in the 25% Fed tax bracket
Will there be capital gain taxes at both Fed and state level?
Any suggestions on how to lessen the tax impact?
Ideally I would like to use the profit to pay off some of my principal on current primary residence mortgage and use the rest for investing in a townhome that I can rent out...
Thank you for your inputs!