How do I minimize taxes for my parents? A reader wants to buy her parents' rental property and minimize taxes for them and for herself. Q: How do I minimize taxes for my parents? They have a rental property and own it without a mortgage. They want to sell it to me. Here’s the problem: [...]
Can I have two main residences? This reader wants to know if she can have two main residences. The IRS only permits each person to have one primary or main residence. You need to pass the IRS test (see below) to tell which is your main residence. Q: My husband was laid off several years [...]
Do all partners have to do a 1031 exchange? Can you do a 1031 exchange on jointly owned property? A trio of siblings wants to know how to do a 1031 exchange if only two of the three siblings are on in the deal. Q: I hope you can answer this question for me. We [...]
1031 exchange process, timelines and examples. There are a number of ways to successfully complete, or complicate, a 1031 exchange. A few weeks ago, we wrote about like-kind exchanges (also known as an Internal Revenue Code Section 1031 exchange) and the temporary relief being granted to some buyers and sellers during the COVID-19 pandemic. For [...]
1031 exchange deadlines during COVID-19 pandemic. This reader wants to know about extensions available to those who completed a 1031 exchange in 2019. Q: We completed our 1031 exchange in September 2019. Our renter has fallen on hardship due to the Coronavirus/COVID-19 pandemic and cannot afford the rent. Similarly, we are in a rental that [...]
1031 exchange rules and limitations. This reader wants to know if they can use a 1031 exchange to buy a new investment property with other investors. Q: Are there options for a 1031 Exchange where you would be a property owner with other people? For example, if you bought an office building, retail center or [...]
How much tax do you pay when you sell a rental property? How home valuation and depreciation factor into taxes when selling investment property. Q: My father in law is selling a duplex he rented out for about 10 years. The sale price is going to be around $300,000. His accountant says that he should [...]
How long do you need to keep a property purchased with a 1031 exchange? Timing is everything when navigating this type of sale. Q: Several years ago you gave me valuable information on a 1031 exchange. Now I need information on how long I have to keep the properties I purchased with my 1031 exchange [...]
How to sell your 1031 exchange inheritance in order to avoid complications with taxes after the sale. Q: I have inherited a 1/3 interest in a property that is part of a 1031 exchange. The total value of the property is being split between 3 heirs and is worth about $150,000. Is there any way [...]
Will a 1031 Exchange help avoid capital gains tax on an inherited home? When you inherit a home and use it as a rental property, you could face major tax implications when it comes time to sell unless you use a 1031 exchange. Q: Will a 1031 exchange help avoid capital gains tax on an [...]
