Thanks for your post.
For guidance on settling a 2nd I recommend you visit this thread and follow the guide at post #1. Strategy for Settling Your 2nd
For possible tax ramifications, I recommend you consult with your tax person, as he/she knows your overall tax situation.
FYI, I'm not a tax practitioner and take very little interest in the subject (except of course for my own situation, LOL).
Good luck to you.