must I pay income tax on the sale of my motel in NV when buying home in WA?

[helenawall]

Nevada Motel that me and my husband is running we still owe $130.000
if sale is $210.000 and motel is now used as pri**** residence also.will we have to pay income tax if we use the income to purchase a new home to be used as pri**** residence in WA for $275 000 ?

 

[abezon]

You will have to pay taxes on the capital gains. You cannot defer taxes when you replace a business asset with a personal use asset, nor when you replace personal use assets.

 

[dallas702]

....assuming the $210,000 actually is a gain over the original price. A motel in NV selling for that price might very well be a "loser". Unless it is a closed brothel, or in a dead mining town, I can't imagine much of a motel for $210K. But, Abezon is right...you can't mix the apples and oranges.

 

[shortbus]

What is your basis in the hotel?