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can the sale of a second home qualify for a 1031 exchange?

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Level 12

It's not a property or sales tax. As a cost of selling, it would reduce the gain on the property.

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Level 11

Assuming that you called it a second home because it is not a rental, no.

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Level 1

It was a second home used for personal family use, and never a rental. They have an approximate LT capital gain of $90,000. So I just report the transaction on Sch D? They never received a 1099-S or 1099-B since the home was located in WA state and they are residents of CA.

Will the state of WA also tax the income because CA surely is??

 

Thanks,

wadams37

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Level 12
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Level 11

WA has no state income tax.

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Level 12

WA has a real estate excise tax, though.

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Can the WA excise tax be deducted as a Real Estate tax on Schedule A?

 

Thanks,

wadams37

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Level 12

It's not a property or sales tax. As a cost of selling, it would reduce the gain on the property.

*******************************
"Level Up" is a gaming function, not a real life function.

View solution in original post

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