Capital Gains Tax on Rental Property and Primary Residence Sale?

Question by Nancy E: Capital Gains Tax on Rental Property and Primary Residence Sale?
In 1987 my ex husband and I purchased a home in GA. One year later he joined the military and we moved and the home has been a rental property. I foolishly paid extra on the mortgage, not knowing at the time that this would increase my capital gains tax. Now, divorced I purchased my ex’s interest in the Ga home and I purchased a home in Maryland in 2004 and may be relocating to Virginia in Dec 2008. Are there any loopholes that would assist in lowering the capital gains tax on the GA home? I thought of refinancing the loan to a higher amount but I’m sure that would not work as easily as it sounds. Also, would selling both homes and relocating to VA help in any way? I read something that said if a second home was sold in combination with a primary residence then used to purchase another home, there COULD be a loophole for some… Thanks!

Best answer:

Answer by Onestep downfrom God
Post this in the USA and you might get an answer.

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