Discussion:1031 question - former primary residence
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Discussion Forum Index --> Basic Tax Questions --> 1031 question - former primary residence
Discussion Forum Index --> Tax Questions --> 1031 question - former primary residence
| 22 April 2009 | |
| Not an expert in this specific area, so need some insight: if an individual lives at least 2 years in his primary residence and rents it out for up to 3 years, can they defer up to the $250K CG exemption by acquiring another rental property via 1031? Somwhere it says to "convert" it to a rental (after using it as a primary residence) so then 1031 applies - does simply renting it out constitute the "conversion"?
Is there a way to realize the $250K exemption without selling the property? | |
| 23 April 2009 | |
| Not really.
If the taxpayer converts the property to rental purposes, the 1031 exchange is potentially taxable to the extent that the boot received exceeds the Sec. 121 exclusion. | |
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