Dave,

I agree that a tax accountant is your best source for this answer. In Coos Bay/ North Bend; Hough McAdam and Wartnick or Mike Gordon are good choices.

Jan Delimont
Prudential Seaboard Properties
541-290-1850
541-269-0355 http://www.coosbayorproperties.com

That is best answered by talking to your acountant or tax preparer.

You are only allowed 1 primary residence - but you can delay capitol gains tax on a second home by doing a 1031 exchange, also called a like kind exchange.
http://www.irs.gov/businesses/small/industries/article/0,,id=98491…
is the IRS site -
http://www.realtor.org/library/library/fg408 is also a good article or contact your CPA or an experienced local realtor.
hope this helps....Kimberly