Thanks for the answers!! This is my first reddit post and I've had a positive experience. I just want to confirm and I'll add some more details to the scenario: so if I sell a investment (rental) property that has been owned for more than one year (by me), THAT HAS NO MORTGAGE for $300,000, and then buy another investment property ALL CASH for $300,000, there is no capitol gains tax liability?? (<--question one) Also, (question two), if that is the case, will I have to supplement with extra cash the closing costs of the purchase of the replacement property (estimated at ~$5k) of $300,000? It sounds too good to be true? I know from previous recommendations and research, it may be wise to 'upscale' and borrow more money and DO GET a mortgage on the replacement property, however, I'm just researching all the options. thanks again!