All Forum Posts by: Steve Hungerford

You have to be able to demonstrate that when you took possession of the property that you had the intent to hold it for productive invest use (if you intended to rent it out that would qualify). If a problem arises with the property you can 1031 earlier than usual as long as it's clear that your original intent was for investment. And that intent changed.

The QIs you're speaking to are probably concerned more about your intent than the holding period. There is one large case where a developer held a property for over 10 years and had his exchange disallowed - Because he had a for sale sign in the yard for the entire time. An extreme example. But make sure you can demonstrate your intent.

Thanks for that information. I am getting tired of all the things I have to do to make it a safe/functional place to rent. I hope that qualifies and I have a trail of spending money to fix it up.

0 Votes

San Jose, California

Quote from @Logan McKay Zylstra:

Yes it can

Thats great. Not sure why some 1031 specialists are telling me otherwise.

0 Votes

San Jose, California

Can a property that is being worked on for about a year qualify as an investment property for a 1031 exchange ?

The property was not in good enough shape to rent and I was working on the property after my dad moved out. I am trying to get it in good enough shape to rent it out, but might just want to sell it now.

Thanks!

0 Votes

San Jose, California

Quote from @Susie Wyshak:

This is very much worth verifying with a professional - perhaps a 1031 company like IPX1031 - and also, depending what city the house is in, know what tenant eviction laws are like. You def want your dad to be able to move back in when the time comes!

This chart is very helpful too: https://www.boe.ca.gov/prop19/...

Good luck!

I did check with 1031 companies and had mixed advice. Some conflicting information.

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I am the POA for my dad. His house has high capital gains taxes (bought it 1983) and low property 19 (CA) tax base. Can I keep property 19 tax base on a 1031 exchange ? ( I have heard no)

Could I do the 1031 exchange and rent out the house for a while and then move him back in as his primary residence and apply the property 19 tax base at that time ? I believe you have 2 years to claim the property 19 tax base and he must have lived in it for 2 of the last 5 years to qualify as a primary residence ?

Could he claim the property 19 tax base if he bought a new primary residence and also did a 1031 exchange on the original primary residence ? We are renting the property now and I know we have to meet the 1031 guidelines to do the exchange.

The motivation for the sale is he needs care right now and I would like to have a larger more functional house available for him to be cared for.

Maybe there is another method to minimize capital gains taxes that make it easier to sell and keep the property 19 tax base ? I have heard a few methods,

Thanks!

0 Votes

I am the POA for my dad. His house has high capital gains taxes (bought it 1983) and low property 19 (CA) tax base. Can I keep property 19 tax base on a 1031 exchange ? ( I have heard no)

The motivation for the sale is he needs care right now and I would like to have a larger more functional house available for him to be cared for.

Maybe there is another method to minimize capital gains taxes that make it easier to sell and keep the property 19 tax base ? I have heard a few methods,

Thanks!

0 Votes

San Jose, California

All Forum Posts by: Steve Hungerford

Steve Hungerford has started 9 posts and replied 56 times.

Post: Can a Property being worked on (not rented) qualify as a 1031 ?

Post: Can a Property being worked on (not rented) qualify as a 1031 ?

Post: Can a Property being worked on (not rented) qualify as a 1031 ?

Post: Can I defer capital gains and keep low prop19 (CA) Tax ?

Post: Can I defer capital gains and keep low prop19 (CA) Tax ?

Post: Can I defer capitol gains and keep low property 19 (CA) Tax ?