Comments on: If I buy an investment property through 1031 exchange, what happens if I move in to the unit? http://property-investment101.com/property-investment-advice/if-i-buy-an-investment-property-through-1031-exchange-what-happens-if-i-move-in-to-the-unit/ The Best Investment Properties Advice Fri, 01 Jan 2010 21:41:26 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: El_Nimo http://property-investment101.com/property-investment-advice/if-i-buy-an-investment-property-through-1031-exchange-what-happens-if-i-move-in-to-the-unit/comment-page-1/#comment-284 El_Nimo Tue, 03 Mar 2009 12:15:33 +0000 http://property-investment101.com/property-investment-advice/if-i-buy-an-investment-property-through-1031-exchange-what-happens-if-i-move-in-to-the-unit/#comment-284 You should consult a CPA or tax attorney on this. Even if you live in it you will not be able to sell the property tax free. Why? You were able to take a depreciation on your old property and then received a gain on it when you 1031 exchanged it. A 1031 only defers taxes not avoid it. You should consult a CPA or tax attorney on this. Even if you live in it you will not be able to sell the property tax free.

Why? You were able to take a depreciation on your old property and then received a gain on it when you 1031 exchanged it. A 1031 only defers taxes not avoid it.

]]> By: spicertax http://property-investment101.com/property-investment-advice/if-i-buy-an-investment-property-through-1031-exchange-what-happens-if-i-move-in-to-the-unit/comment-page-1/#comment-283 spicertax Tue, 03 Mar 2009 06:22:30 +0000 http://property-investment101.com/property-investment-advice/if-i-buy-an-investment-property-through-1031-exchange-what-happens-if-i-move-in-to-the-unit/#comment-283 No tax due when you move in. But you will not get the 250,000/500,000 capital gain exemption when you sell it unless you live there for 5 years. This is longer than the normal 2 year rule for getting a home sale exemption from gains. No tax due when you move in. But you will not get the 250,000/500,000 capital gain exemption when you sell it unless you live there for 5 years. This is longer than the normal 2 year rule for getting a home sale exemption from gains.

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