Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 3 years ago on . Most recent reply

User Stats

13
Posts
3
Votes
Sherry W.
3
Votes |
13
Posts

Can I avoid 1031 Exchange and take the $250K exclusion on rental?

Sherry W.
Posted

I've Googled this extensively, and asked my accountant (who is not a real estate CPA)--

Here are the basics:

--We built the house in 2000

--Divorced in 2009, house was quitclaimed to me

--I lived in the house until mid-2011

--Rented it out from mid- 2011 to present

I am selling it now, moving out of state for a job,and have been trying to avoid a 1031 exchange, AND paying $$$ in taxes.  I read IRS Publication 523, to qualify for the exclusion of gain, and it states that: 

"You meet the standard requirements if any of the following events occurred during the time you owned and lived in the home you sold"  -

  1. --Became divorced or legally separated

Since I did get divorced while owing the home, am I able to claim the $250K exclusion?  I understand that I will be taxed on the recapture of depreciation...and am ok with that, rather paying tax on the whole gain?

    Loading replies...