How to defer capital gains tax on long-term rental

Q: I have a summer cottage that I have had about 25 years and always rented it until two years ago when I used it during the summer for myself. I know if I sold it there would be big capital gains. I paid about $42,000 for the property and I might be able to sell it for $225,000.

If I sold it and bought another cottage/house for $250,000 and sold that in two years for $275,000, would the capital gains be less?

A: You've owned a piece of real estate for 25 years and rented it for most of that time. more...

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