All Forum Posts by: Jonathan Serna

Thanks for the reply Bill. The total sale of the property is $400K. Good call on the pre-qual process. I'm starting that this week. Its difficult to identify properties now not knowing when my closing date is. I'm confused on what you mean on "owing taxes regardless". What would I own taxes on?

Hi BP,

Looking for some advice from the BP community. We are a few weeks away from the sale of our NYC apartment. This will net us $300K profit that will have to be put into 1031 escrow to defer capital gains tax. I missed the 121 exclusion by 4 months (I know...). We are currently living in Richmond, VA. Ideally we get a multi family in Richmond and call it a day. I want to diversify our portfolio and possibly get a multi fam in Richmond and a STR in a vacation market. My question to you all is... WHAT WOULD YOU DO? 

Thank you for the reply @Michael Plaks. Now that I know I have to do a 1031 exchange I will speak to someone about my options. 

Ok thank you @Wayne Brooks for confirming for me. I figured that was the case. 1031 it is!

Hi BP fam,

First time poster long time lurker. I'm wondering if someone can advise on my situation. I tried reaching out to a CPA but they're either very busy because of tax season (understandably) or want to charge me $500/hr. I'm happy to pay but they won't see me for a few weeks and I need this resolved before the close of my apartment. The situation in question below:

1. Wife and I bought a 1 BR co-op in NYC as our primary residence for $232K in 2014

2. Rented out the co-op starting 1/1/2019-current day

3.  Our current tenants asked to buy the apartment ($400K). We're in contract and scheduled to close in late June/early July 2022. 

TO RECAP:

Primary Residence (2014-2019) Owned

Rented out (2019-present)

So it was our primary residence in 2017 & 2018 and we rented it out starting 1/1/2019, 2020, 2021, does that still fall under the 2-Out-of-5-Year Rule if our date of sale is 7/1/22?

My question is, am I still within the 2 out of 5 year rule? If so, do I still have to pay capital gains taxes? If so, what is the percentage that I will be responsible for? If I am not within the timeframe, what are my options besides a 1031? For context, we want to use a small portion of the profits to fix up our current primary residence in Richmond, VA. 

Thank you in advance!