Welcome to the Jack Shea Real Estate Blog. We have lots of information on IRA's, 1031 Tax Exchanges, Land Trusts and more.
Welcome to the Jack Shea Real Estate Blog. We have lots of information on IRA's, 1031 Tax Exchanges, Land Trusts and more.
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Jack,
I did a 1031 Exchange in 2005. I would like to make it my personal residence now. What would my tax liability?
Thank you, Danny Boy
Danny, No tax effect at this time. You can convert from an investment property to residence after one year. There will be a taxable event when you sell your house if the gain exceeds the code section 121 limits, which are $250,000 single $500,000 for a married couple. This would be computed from the basis you moved in to the investment property.