There are two types of real estate that can be sold with advantageous tax treatment, your primary residence and your business/investment property. Favorable treatment exists for the sale of a personal residence if the property has been the primary residence of the taxpayer for two of the preceding five years. Section 121 of the Internal […]
It is possible to convert property from one type to another without tax consequences. Your primary residence can become your rental/investment property and your investment/rental property can become your primary residence.
By: George E. Foss III As the days and weeks pass, the effectiveness (from IRS’ perspective) of the new provisions slipped into Section 121 grow and grow. It used to be true that you could move into one of your rental properties, live there for two more years as your primary residence, and then sell […]
We are often asked how Section 1031 transactions are monitored by the Internal Revenue Service (IRS) and whether a 1031 police force exists to monitor taxpayer actions. The truth is that in nearly three decades of practice, we have never been informed of the existence of this authority. However, we regularly point out to clients […]
Taxpayers who own a second home and want to defer the capital gain on sale have used one of two strategies to achieve tax relief. The property can be converted to rental property for a minimum of two years prior to sale and structured as a Section 1031 Exchange using a Qualified Intermediary with the […]