Home Owners Tax Question

Cisco
Dundhibi!

Go to company page Cisco

Dundhibi!
Feb 19, 2019 4 Comments

Friend had a rental home in Bay Area; based on someone’s suggestion he did a 1031 exchange to a new home (sold the old one) and moved into new one, questions,

- is he entitled to pay capital gains tax on the gain upon sell-transaction
- if yes, is there any alternative to avoid it..

Anyone in this situation before, Any implications, any suggestions...

comments

Want to comment? LOG IN or SIGN UP
TOP 4 Comments
  • Google
    w66ftyh

    Go to company page Google

    w66ftyh
    I think he is not supposed to move into the new home for one year if it's a 1031 Exchange. You can only do "like kind exchange" from investment property to investment property, not primary residence.
    Feb 19, 2019 0
  • Google
    1234-/:;(

    Go to company page Google

    1234-/:;(
    He has to pay taxes. Rental and primary residence are not like buildings for a 1035
    Feb 20, 2019 0
  • New
    DuQvV7x

    New

    DuQvV7x
    Call a CPA.

    Moving into the new home violates 1031-exchange rules.
    Feb 20, 2019 0
  • Amazon
    JcrE05

    Go to company page Amazon

    JcrE05
    Not if he re-invested all the proceeds into the new home
    Feb 19, 2019 0