1031 Exchange Into Your Dream Home
Can you use a 1031 exchange to buy your dream home and avoid paying capital gains tax?
A new IRS rule adopted in 2004 makes this possible. You must carefully follow these steps:
1. Sell your current investment property and have the sales proceeds held by a qualified third-party intermediary.
2. Buy your dream home and rent it out for a least 6 to 12 months after purchase to show rental intent. Then you can move in and convert it to your personal residence.
3. If you plan to sell it and claim your $250,000 or $500,000 principal residence exemption of IRC 121, you must own it at least 5 years and live in it as your principal residence at least 24 of the 60 months before the sale.
(We are Realtors and cannot give you tax advice. Consult with your tax professional.)
Want to learn more about 1031 Exchanges. Attend our seminar tonight - June 15,2006 in Bradenton, Florida. See the details at:
http://www.bradentonrealestate.com/?fuseaction=site.seminar
A new IRS rule adopted in 2004 makes this possible. You must carefully follow these steps:
1. Sell your current investment property and have the sales proceeds held by a qualified third-party intermediary.
2. Buy your dream home and rent it out for a least 6 to 12 months after purchase to show rental intent. Then you can move in and convert it to your personal residence.
3. If you plan to sell it and claim your $250,000 or $500,000 principal residence exemption of IRC 121, you must own it at least 5 years and live in it as your principal residence at least 24 of the 60 months before the sale.
(We are Realtors and cannot give you tax advice. Consult with your tax professional.)
Want to learn more about 1031 Exchanges. Attend our seminar tonight - June 15,2006 in Bradenton, Florida. See the details at:
http://www.bradentonrealestate.com/?fuseaction=site.seminar
posted by Dan Forbes at
11:07 AM
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