2nd Property as an investment

[chansen]

I just bought a second condo as an investment about one month ago. Looking about 15-20 years from now, I was thinking about selling it so that I could turn a profit. What are the basic rules as far as capital gains tax is concerned? I figure that I have to live in it 2 out of five years before I sell it, but do I have to reinvest in another property with the amount I profit, or could I just put the money in the bank when I sell the place?

 

[Michael Wechsler]

If you are talking about tax purposes then there is only one property that you can have as a primary residence. With regard to reinvestment of the money in a "like kind" investment, that is a tax question and I'm not sure it applies to real estate.

Originally posted by chansen
I just bought a second condo as an investment about one month ago. Looking about 15-20 years from now, I was thinking about selling it so that I could turn a profit. What are the basic rules as far as capital gains tax is concerned? I figure that I have to live in it 2 out of five years before I sell it, but do I have to reinvest in another property with the amount I profit, or could I just put the money in the bank when I sell the place?