Say you own a vacation home that you’ve rented out most of the time and also used as your personal residence some of the time. Now you would like to unload this property and acquire another one that you would also rent out most of the time. With real-estate prices surging in many areas, your current property may be worth far more than your tax basis (generally the purchase price plus the cost of improvements minus any depreciation deductions you’ve claimed for rental periods). If so, selling could trigger a big taxable gain (the difference betwee… – All MarketWatch News – Personal Finance