All Forum Posts by: Kimi Ho

Hi Dave, thanks for all the information. I thought that would have been the case hence posted here to clarify. In that case, it would make more sense to hold onto it for a bit longer to reduce the taxes more. 

Thanks for the response E.J. Will look into it further. 

Hi Clayton,

Thanks for the response. We actually sold and moved in 2023. I got slightly confused there. So it seems we are hitting the 2 year milestone this Summer. Per your advice I will consult with my accountant. Thanks again. 

Hello,

We sold our primary residence mid 2024 and moved into our investment property that we acquired in 2020. The investment property was purchased through a 1031 exchange. I would like to get clarification as to whether we can sell our now primary residence without having to pay capital gains. And if we had to pay what amount or percentage would that be?  We will have stayed there 2 years this coming June. 

Some background information:

Primary residence purchased in 2018  for $1mil - Sold 06/2024 for $1.4mil. No taxes paid as under $500k cap. 

Investment property purchased in 2020 via 1031 (relinquished property bought for $140k and sold for $330k)

Replacement bought for $750k + $100k remodel throughout 

Moved into investment property 06/2024 until present. 

As always, your expertise is much appreciated. 

Hi All,
need to verify some calculations from my accountant. Need only rough calculations/numbers as I understand that the numbers depend on my income. 
bought a house in 2010 for 136k and sold 2020 for 340k (cap gain after fees about $170k). 
We did a 1031 exchange and bought another property in 2020 for 750k. We just have recently received an offer close to our asking price of 1.4 mil. 
I’d like to know what my taxes are roughly on both cap gains. 
may accountant said it would be around 420k for federal and 120k for state which would basically erase almost all gain. 
she used the base as 200k and the cap gain as 1.2mil which clearly is not the case. 
my calculations show 170k gain from first property and $475 from 2nd hence I should be paying cap gain taxes on 645k. 
if my accountant was right, it wouldn’t make sense to sell at all. 
any input I’d appreciated. Let me know if I’m missing any relevant information. Thanks

Hello,

I recently hired an accountant to do my taxes which include a 1031 exchange. Prior to hiring I confirmed with the accountant that he is in fact familiar with this process. Now, my files are ready to be submitted to the IRS; however, I would like to confirm if the numbers on form 8824 are correct. Any help would be appreciated as to my understanding if it is filled out incorrectly, it could lead to a denial.

Scenario: 

Relinquished: Purchase price $120k in 2/2016 - sold for $225k in 2018

No improvements, depreciation over 2 years = $7k

Received: Purchase Price $403k 

My accountant did the adjustable basis.... at ~$240k and realized Gain at ~$162k (lines 18 and 19 on form 8824 respectively).

Many thanks for any input. Please let me know if I left out any relevant information. 

My calculations would be:

$316k (line 18) $87k (line 19)

Based on: $113k (Adjusted basis of like-kind property you gave up) + 203k cash or loan (net amounts paid to other party) -> $403k - $200k (cash from sale of property) = $203k

Thank you so much for your expert advice on this David. Do you have any CPA referrals who specialize in 1031's? 

Hello everyone,

I am having trouble getting answers regarding a split use property that I am about to purchase. The property only has one house number and per appraisal is a single family residence. However, there are actually two complete units with one shared common wall only. One is a 3 bedroom 2 bath built in 1953 and the other is a 4 bedroom 2.5 bath built in 2007  (built as addition with full permits). We are intending on moving into the 2007 unit and rent out the other one. I am trying to get an answer from my exchange intermediary who says that is a question for my CPA. Upon asking my CPA, I am being told that is the job of the intermediary. Following is a description from the realtor selling the house: This is actually 2 totally separate, complete homes with one common wall!!! Original single story home, built 1953, has been totally remodeled with 3 bedrooms, 2 bathrooms, wood burning fireplace, covered rear patios & more. Secondary home built in 2007 is two story with 4 bedrooms, 3 bathrooms. I would appreciate any input into this