I have a rental house in Seattle that has been rented for 12 years and is values about $485K. We bought a house in North Carolina last September and didn't know about being able to roll the proceeds from the sale to our new place and I think we missed the window to do that. What are other options and how much would the capital gains rate be?

  • 2
    You still own the rental in Seattle? Is the new place a rental as well?
    – Hart CO
    Jun 18 '21 at 17:01
  • Yes we still own and are renting the home in Seattle. The new place is our residence.
    – Paul
    Jun 19 '21 at 19:17
  • If you still own both places then what "proceeds" are you talking about? What was sold if you still own it?
    – Daniel K
    Jun 20 '21 at 17:18

If you had lived in the rental 2 of the last 5 years before selling you could have saved on capital gains tax. If you sell the rental and within a certain time period buy another rental then you can defer capital gains tax (1031 exchange).

There's no tax benefit to selling a rental in order to buy a primary residence, so you didn't miss out on anything as far as I can tell.

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