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Updated over 1 year ago on . Most recent reply

User Stats

38
Posts
17
Votes
Daniel Volk
  • Cleveland, OH
17
Votes |
38
Posts

Tax strategy for SFH rent converted to primary residence

Daniel Volk
  • Cleveland, OH
Posted

I bought my first home as my primary residence in 2018 and then bought a duplex in 2020 which I moved into as a primary residence. The former home was rented out for a year, then we had to sell the duplex and move back into the single family for health reasons. 

For 2022 taxes, we used the reasons for selling the duplex as a change in health which meant we were exempt from capital gains (even though we didn't live in for two full years).

However, I now have to move from the SFH due to a change in jobs more than 50 miles away. But because I took the exemption above, I can't take another exemption within two years

I was curious if there was a way around paying capital gains on the SFH. Specifically, I thought about a 1031, but my next property isn't for business or rental, and the SFH was only used for rental for 1 year.

Thoughts?

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