4 ms·
> There's ways around that through 1031 exchange Only if the properties are both used for "trade, business or investment" (https://en.wikipedia.org/wiki/Intern
by pwg 2y ago
> There's ways around that through 1031 exchange
Only if the properties are both used for "trade, business or investment" (https://en.wikipedia.org/wiki/Internal_Revenue_Code_section_1031 https://en.wikipedia.org/wiki/Internal_Revenue_Code_section_...). Since your primary residence is not classified as "investment" by the IRS, you can't use a 1031 exchange to defer gains on your primary residence.
And a 1031 is a deferral (see cite above), not a "tax free" swap. If you eventually sell without going through yet another 1031 exchange, all the deferred gains become taxable at that point.
- bdangubic 2y ago> you can't use a 1031 exchange to defer gains on your primary residence who says it would be my primary residence when I am about to sell... you never sell your primary residence unless it is an emergency, you move first and make it an investment property and then sell and roll over ... > If you eventually sell without going through yet another 1031 exchange You don't of course ever do that. And all this should be in a trust of course...