My wife and I own a house in College Park MD with about $300K in equity, which we currently rent out. We also own a townhouse in Kaneohe, HI, which is our primary residence. We'd like to sell the MD property and use the proceeds to re-finance our HI property to get a much lower monthly payment.

Would we be liable for capital gains taxes on the money we make on the MD house if we do not purchase a new property, but instead put it towards an existing mortgage?

I found this important information on selling a house in Maryland.

Plus general information about Federal taxes.

dallasiteinsa02 said:

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Have you lived in it for 2 of the last 5 years?

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This is the right question

We have not. Moved out in Feb 2012.

You are going to need a CPA

SteveBott said:

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You are going to need a CPA

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This is correct.

Reading the second article Bill Robbins posted though, I am active military. So that may help.

Thanks for the references and the advice. We'll definitely get a CPA to help us when the time comes to sell.

Bill Robbins said:

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I found this important information on selling a house in Maryland.

Plus general information about Federal taxes.

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The link is useful. This should definitely help.