I have a 2nd home, not rental or investment property, in SC held for more than 5 years. I live and file in NJ and am in 28% fed bracket. What deductions can I take against the gains on sale of property to reduce exposure to capital gains both federal and state. Do special assessments, not regular monthly assessments, that were used to reconstruct common areas such as porches and fronts of buildings qualify as deduction? Any other deductions qualify? Do the capital gains in state of NJ become part of ordinary income and thereby may place me in a higher state income tax bracket which would affect all of my income?