All Forum Posts by: Ouman You

I think the real question is why don't you trust your attorney who you pay a lot of money to give you legal advice? If you have reason to doubt them maybe it's time to get a new attorney.

You need 60 days notice if the increase is more than 10%.

Go for it!

@Ouman You Thanks for clarification. So it sounds like she may qualify for the 121 primary exclusion but again, her gain exceeds that. She could move out, rent the property for 24 months, and sell within that fifth year. Then she may qualify for the 121 exclusion and also a 1031 exchange. Feel free to reach out should you have more questions about this type of transaction.

I’m curious what part of the country is this?

CA by any chance?

This situation makes me think how so many people believed the lie the US govt told people that their home is their biggest asset 

Well ah yes if you want to sell and live in a lower priced house. 

The important takeaway is exactly what I stated: Its a way for the seller to get cash at closing and defer the taxes for 30 years. If you want to see the nitty gritty details, I just shared them in this post for another member with a large capital gains tax problem...

https://www.biggerpockets.com/forums/51/topics/569...

 I think you misunderstood my post. The seller walks away with cash in hand and a 30-year tax-deferral. That cash is used to buy the next property.

@Ouman You If the property was her primary residence, yes, it will not qualify for 1031 exchange treatment. If she hasn't lived in it as her primary, if she has held the property for appreciation, she may qualify for 1031 exchange treatment. To complete a 1031 exchange, you don't necessarily have to rent the property, you could hold the property for appreciation. Is the property reported as her primary on her tax return?

@Shiloh Lundahl - if she isn't currently living in the property, yes, she could move back into the property and live there for 24 out of 60 months to qualify for the 121 primary exclusion. But there is a limit to how much you can exclude from ordinary income. It looks like she will be well beyond that amount. If she's single, she can deduct 250k from ordinary income and 500k if she is married. Looks like her gain well exceeds that. If she is living in the property right now, she could move out, rent the property for 24 months, put the property up for sale and sell within that 5th year so that she can qualify for the exclusion and anything above that amount could qualify for 1031 exchange treatment.