I currently own an investment property in Florida and I am looking to sell it. I bought it in 5/2004. I currently rent an apartment in San Francisco and so the only property that I own is that one in Florida.

I’m aware of a capital gains tax that you must pay any time you sell an investment property. What I’d like to do is avoid paying this tax if possible. I’ve heard that because it is my only property, it does not qualify as an investment property and so I wouldn’t have to pay this capital gains tax.

Is this true?

I am using the profit to build a garage on my primary residence, can I use this to offset the capital gains tax on the 2 nd home I sold? I never lived in the 2nd home, it was a lake house. Also I had to give 1/2 of the profit to my father because he helped pay for the property, but the deed was in my name only.

I am looking to buy a house in Hudson Valley, NY. I will pay cash for the house so will not have to apply for a mortgage. I will use the home as a vacation home and will only be staying there for 4-12 weeks a year.

1. Will I have to pay the same taxes as owners who live in their homes full time?

2. If I decide to rent out the house full time/par time. Will I be taxed on the rental income? What will the tax percentage be?

3. Will I have to pay capital gains tax if I sell the home at a profit? What is the capital gains tax percentage?

4. Which tax papers will I have to file as a non-resident owning a home in the US?