My House is worth 550,000.00 and I owe 300,000.00. = The Capital gain is 250,000.00

Does this apply to Me?

Section 1031 of the United States Internal Revenue Service's tax code, you can defer gains or losses on a property sale by reinvesting the proceeds of the sale in a like-kind property. This type of reinvestment, or property exchange is nicknamed a 1031 exchange.

Question:

Can I sell my rental home with the tenants have reside for (1 year 9 months). and purchase a home (not a rental) without being penalized?

I was living there in my house for 5 years before the tenants (renters) starting paying me rent.

Can I sell it and take that money (CAPITAL GAIN) and buy a home for me to live in?

Answer rating: 100% (QA)

Answer As per given details firstly answer to your question is Yes It is correct that you can sell h... View the full answer