Capital Gains

[AlmostThere]

I hope I can put this to words what I need to know...so here goes.
Evidently I'm no CPA or I wouldn't be asking, but perhaps someone out there is more knowledgeable.
I know that an RV is considered a 'second home', right? (And when you file your taxes you can write off the interest if you are making payments). But when a person sells their stick home, you pay capital gains taxes on that income unless you turn around a reinvest in another home. Is that correct? If so, is purchasing an RV considered 'another home' so capital gains taxes can then be diverted?
I may be way behind the times and perhaps capital gains has been done away with now.....

Was that clear as mud?

[Mollysmom]

Lenora,
I don't know this, but I'd think you wouldn't make money on a RV so you wouldn't have capital gains. They usually depreciate in value unlike a house that would appreciate in value (or should - HA)
that's my guess !!

[Bethers]

When I talked to my acct about my rv and taxes, basically the only thing I would have "maybe" been able to do was to deduct the payments. We worked around the figures (well, he did) and the decision was for me to pay in full for the rv, rather than make payments. For a question like yours, I'd have to go to him, or another accountant to get the answer for me. But, as Trudy says, I can't picture capital gains on an rv - as they don't gain.

[WickedLady]

Last I heard, anything under $250,000.00 is exempt from capital gains taxes. You can call the IRS and ask them for free.
Marda

[Redetotry]

I Google everything and when I put in capital gains and buying RV I got this link.

http://www.bankrate.com/bosre/itax/news ... -gain1.asp
You can use the money to travel to Europe in style, buy an RV and drive across the country or get ... In those cases, the usual capital gains rules apply. ..."

Now if that is for real sure sounds like fun! But I think your best bet is call your tax person, the laws seems to change pretty quickly.

[Getupngo]

I'm an old tax gal. The IRS says:

If you sold your main home in 2008, you may be able to exclude from income any gain up to a limit of $250,000 ($500,000 on a joint return in most cases). You have to pass the "use test" and meet a few other requirements.

That's from IRS publication 523.
If it's not subject to capital gains ... spend it however you like. As I understand it, the requirement to reinvest in a another home went away a few years ago.

[AlmostThere]

Thanks for all the replies/links everyone!
Janice, I think you may be correct. And the IRS changes almost monthly in what they want so who knows? Guess I'll just have to wait and cross that bridge if/when it happens.

[pattyk]

Janice is right. I'm a retired CPA trying to forget all the things I knew about taxes. Still get calls from former clients though.