With increased real estate sales and exchanges I see investors now purchasing Florida properties and other retirement area properties. There is no minimum holding period for replacement properties.
They rent these properties for a while and then change the use to personal residence, and move in. After a suitable time these properties become eligible for the code section 121 residential sale exclusion of $250,000/$500,000.
We’re a group of volunteers and starting a new scheme in our community. Your web site provided us with valuable information to work on. You have done a formidable job and our whole community will be grateful to you.
Saving tax on the sale of investment property is a great benefit of Code section 1031 of the tax code. Combined with the sale, tax-free of a residence under code section 121 it offers complete tax deferral of mixed use properties.