When it comes to taxes, owning a second home can be a bit complicated. One of the key things to be aware of is the capital gains tax that may be owed when you sell the property.

First, it's important to understand what a capital gain is. A capital gain is the profit that you make from the sale of a capital asset, such as a home. The capital gain is calculated by subtracting the original cost of the asset (also known as the "basis") from the sale price. If the sale price is higher than the basis, you have a capital gain, and if the sale price is lower, you have a capital loss.