Originally Posted by brewbag
Thanks for the response. Would I be amiss to say that it is perfectly acceptable to 1031 my split property then?
or is the short answer a "yes" to my question?
Aslongas it is investment pty then yes;for example, as you know, Section 1031 of the Internal Revenue Code allowsyou to sell investment real property (“Relinquished Property”), have the proceeds used to purchase new investment real property (“Replacement Property”) and defer the taxes on the sale (the “Deferred Exchange”). 1031 exchanges are for investment properties, not for primary use properties. As I saiod previouslyNow you should be able to convert the property into a 'investment' property by taking on a tenant with a lease through the end of the year... that would be investment.
For reg primary residence, the provion, “ you need to reinvest the proceeds from the sale of your residence within 24 months before or after the sale, and that you hve to acquire a property which reflected a value equal or greater than the value of the residence sold, have been discontinued with the passage of the 1997 Tax Reform Act. These were formerly found in Section 1034 of the Internal Revenue Code. Currently, if a personal residence is sold, provided that residence was occupied by you for at least two of the last five years, up to $250k (single) and $500k of capital gain is exempt from taxation.