Capital Gains Sell Rental to Pay Primary Residence Mortgage
Capital Gains Question
In the next year or two my wife and I and planning to move to the Dominican Republic.
We own 3 properties here in USA
Property #1 Rental owned free and clear, Valued at $250,000.00 with $125,000.00 capital gain if sold.
Property #2 Rental owned free and clear Valued at $300,000.00 with $100,000.00 capital gain if sold.
Property #3 Primary Residence Valued at $400,000.00 with a mortgage balance of $225,000.00
Essentially rent from Property #1 pays mortgage of #3
We would like to only have 2 rentals when we move...easier to manage. We would also prefer NOT to sell the Primary Residence as we would want to move back into it in 5 to 10 years.
Can I sell Property # 1 and use the proceeds to payoff Property #3 mortgage and then convert #3 in to a rental with out paying capital gains...or at least defer those gains. Ideally I would like to move back in to Property #3 as my Primary Residence and avoid any tax at all as we never plan to sell #3 and leave it to our daughter. I have read you can roll proceeds from one investment in to another with out Captial Gain. Rather sure this is not possible .
Probably a better question for a CPA....but I thought I would see if anyone here knows.
Thanks,
Larry