About Jonathan Montagne Expertise I am able to answer questions about single family homes, condos, short sales, foreclosures and investment property. I am also able to help new buyers plan for owning a home. I am able to handle planning, savings and credit questions.
Experience My expertise is in single family homes and rental property in the west side of Cincinnati. I also have a niche in historic homes in College Hill, Avondale, and Walnut Hills. I have been a resident of the area for 12 years and I am an active Realtor(R).
Education/Credentials I am a licensed real estate agent, member of the National Association of Realtors(R), member of the Ohio Association of Realtors(R), and member of the Cincinnati Area Board of Realtors(R).
Question Our main home is in Florida. Sometime in the near future we will want to sell our summer home in Missouri. We have two children. We would like to have access to the money from the sale of the home yet avoid as much capital gain taxes as possible. Any suggestions?
Answer If you lived in the home 2 of the last 5 years, then you should not have to pay any capital gains taxes.
If you put a mortgage on the property, you would be able to get the money out without taxes until the sale. You could rent the property to pay the mortgage and deduct interest and building depreciation from your taxes.
A third option would be to sell your summer home and buy a different property. You could do a 1031 exchange to transfer your equity tax free to the new property. It could be rented and a mortgage could be put on above.
In general, a 1031 exchange will let you transfer money tax free between properties. You don't need to do a 1031 exchange if the property was your residence for 2 of the last 5 years. You can pull out money tax free without selling by putting a mortgage on it. Taxes will need to be paid on capital gains at the sale even if you put a mortgage on it.
