If I Sell A House That I Had Built For Investment And Turn Aroung And Take The Profit And Purchase A Mobile Home That I Live In, The Mobile Homes Value Is Less Than The Home Built, Will I Still Have To Pay Capital Gains On The Income I Receive From The Investment Home?

I believe the litmus test to your question is how long did you hold the house that you built for investment before you sold it. If it is longer than 2 years, I believe you are safe from Cap Gains. At least that is the way it was a year or so ago. I don't think it has changed. If you held the property for less than 2 years, sold it and invested it in another property (called a 1031 exchange, for the IRS code that allows you to do this), you will not be forced to pay the capital gains. Any residual gains leftover that are not re-invested, I believe, are taxed at the capital gains rate. To be sure, I would double-check with your tax guy. Fairly easy question to ask and get answered. Good Luck!

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