Wondering if you know how much we will pay on Capital Gains if we make a profit of 70K on our rental investment property? We bought the house as a foreclosure for $120K and hope to sell it for $200K...and deduct around 10K of rental expenses. Our tax bracket is (after deductions) around $50K a year. We are thinking of investing the entire $200K in another property to avoid paying capitol gains. Our question is: Can we invest the $200K in 2 different properties....one for $120K and one for $80K or does it have to be one property for $200K. THANKS!!!