All Forum Posts by: Nate B.

That's very helpful @Dave Foster. I appreciate you taking the time to provide a thoughtful reply. If I may ask for some additional clarification, are you saying that my new residence that I'll purchase (or build) needs to have an investment component in order for me not to have to pay capital gains taxes from the sale of my current investment property?

In other words, if I took proceeds from both sales (400k on principal residence, and 250k from investment property), and purchase a new home (for myself) for 650k, will I be expected to pay capital gains on the value increase from my investment property (bought for 150k, now valued at 250k)?

I own two homes, one of which is my primary residence, and the other being an investment property, currently being occupied by my parents. They have been paying us a minimal amount of rent over the past 2 years, while living in our investment property.

My parents' health has been deteriorating and we're planning on having them move in with us, as to have them closer and provide the care they need. Ideally, I would like to sell both homes, and build a new home that has an in-laws set-up, where they would live. 

Is it possible that I could do a 1031 exchange by selling both homes, use the proceeds from both sales toward the purchase of a new home, and defer the recognition of capital gains and related federal income tax liability on the exchange?

Thanks in advance. Nate