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Do you pay capitol gains tax on owner occupied duplex at sale?
Hi,
as far i was aware this whole time when you owner occupy your duplex one side and rent the other for 2yrs and you sell it within 5yr period there is no capitol gains tax. Is that statement true? I'm getting a lot of different responses. Anyone had this experience before, and what happened? Thanks!
#1 1031 Exchanges Contributor
- Qualified Intermediary for 1031 Exchanges
- St. Petersburg, FL
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#1 1031 Exchanges Contributor
- Qualified Intermediary for 1031 Exchanges
- St. Petersburg, FL
@Mark Hayden, It's a great plan!! the portion you will be using for investment needs to be worth at least as much as the net sales price of your old property. So, you are exactly correct. If your net sale of the SF rental is $250 then the portion of the new MF used for investment must be at least $250K in order defer all tax.
Proceeds from the 1031 exchange can fund the entire down payment. Which is what makes these kinds of house hacks so attractive.
