Capital Gains on Cabin Sale

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Tax2023mkd
Tax2023mkd Member Newcomer
edited January 15 in Credits/Deductions

We purchased a "fixer-upper" cabin and closed on 6/30/2023, taking out a $210K mortgage, before we were able to sell an existing cabin. We sold the existing cabin, which was owned with no debt, and closed on it on 9/19/2023. The new cabin price was $380K and the old cabin sale price was $185K, clearing about $175K after the realtor and other fees. We purchased land and built the cabin that we sold for approximately $165K. We are using the proceeds from the sale of the original cabin to create a cabin that is mold-free, critter-free, and inhabitable. Will we still need to pay some type of capital gains on the proceeds from the sale of our original cabin?

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