I am not a CPA. This is not professional advice from a CPA.
You should consult with a CPA. You need to know how the gain is calculated. You may not have any gain, or the amount of gain and tax may not be worth worrying about..
There are ways to avoid paying capital gains, one of them being the aforementionedTax Deferred Exchange IRS Code 1031. Again, discuss with a CPA that has experience conducting 1031 exchanges. The law is always changing, so get the latest information.
My experience is that not all CPAs have EXPERIENCE with investment property. I would also recommend talking with at least one Realtor who has experience with investment property. They might be able to refer you to some professionals for competent advice.
My experience has been that it is well worth the time, money, and effort to get as much good advice as you can, then move ahead.... more