All Forum Posts by: Teresa Rad

@Dave Foster :D thanks again!

@Dave Foster thanks for clarifying! What if you buy 2 properties for the $700k, rent out both and after 1 year move into one of them?

If you do the 1031 exchange and buy another investment property, does the new property have to be of the same value as the one that was sold, or can it be less as long all of the profits are used for the exchange/purchase? For example, you sell a property for $700k, net profit is $300k after expenses. If you use all of the $300k profit towards buying another investment property that is less than $700k, does that qualify the like-kind exchange? 

Thanks @Dave Foster, that's a great idea!

Thanks Steve, that's what I thought. For the 1031 exchange, you need to buy something of equal or more value I believe, and doesn't it need to be another investment? I want to sell and use the money to buy a home. 

Regarding the refinancing option, how would that work? Do you mean a cash out refi so I take some of the equity to put towards another property?

Hi, I have question about what is considered your primary residence. I own an apartment that I lived in for about 8 years before moving out to rent a home with my new husband (apartment was too small for us both) while we save to buy a home together. 5 years later, I want to sell my apartment and use that money to buy a home together, but now I have to face the capital gains tax implications.

Since I moved out but did not buy a second home and instead, my husband and I have been living in a rental - is the apartment that I own considered my primary residence (since it was for 8 years prior) and therefore, can I avoid or minimize the capital gains tax? It seems at odds with the fact that we don't own a 2nd home but live in a rental, but maybe that doesn't matter? Would appreciate if anyone has any advice about this situation.

thanks!