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Updated almost 6 years ago on . Most recent reply
1031/capital gains/depreciation recapture for military
Here we go, I bought my primary residence in Feb 2013 and lived there until Oct of 15. I then received orders to move and have rented it out since. I have heard there is a 10 year extension for military to avoid paying capital gains so you just need 2 of the previous 15 years to qualify. Can anyone confirm this? Additionally, if I do this and sell the house will I get hit with depreciation recapture? I bought the house for a steal at 230k and owe a little under 200k. Comps are around 290-300k. I plan on using the proceeds to get a multi family home so a 1031 is also an option if I am going to get hit with taxes. Finally, I have 4 mortgages, if I go with the 1031 option, I assume the house I get will count as #4 and not #5 since I'm essentially trading one mortgage for another?
If you made it this far, thank you. It's a wordy post from a newbie investor.