Q. I have a second home which is a rental in New Jersey. I’m a resident of the state but I’d now like to sell the rental and buy a home in Florida. Do I have to pay capital gain taxes even if I buy another house? I was told I have 45 days to buy another house without having to pay taxes. Is that correct?
A. There are different rules for the sale of rental property and personal residences.
When you sell a rental, you can’t defer the taxes by buying a personal residence, said David Ritter, chair of the tax practice at Brach Eichler in Roseland.
You didn’t say whether the property you want to buy in Florida is for personal use or rental.
If you are selling a rental property in New Jersey and purchasing a new rental property in Florida, you can defer the