Hey BP Community,We have a home that has been in the family and has not been declared as a rental for tax purposes due to various family members and friends living in it.It has come time to sell, and the question is whether or not we need a 1031 Exchange in order to avoid Capital Gains Tax?

Hey BP Community,We have a home that has been in the family and has not been declared as a rental for tax purposes due to various family members and friends living in it.It has come time to sell, and the question is whether or not we need a 1031 Exchange in order to avoid Capital Gains Tax?

I didn’t do this because I was investing in Baltimore, I would’ve done it had I picked any another city/area to protect my capital and make sure my investments are good. 

Cap Imp vs Repair Expense IRSI'm in the middle of doing some 2017 tax crunching last minute so of course I am on Bigger Pockets forum instead of finishing up my taxes :-)Anyways here's a useful tip on Cap Improvement vs Repair ExpensesMy strategy has always been to increase regular maintenance, repairs (Repair Costs) and spread out costs over time instead of the hands off approach to defer maintenance into larger Capital Improvement expenses. 

I used capital from a HELOC to purchase a note.

But you also benefit (historically speaking, only) from a higher capital appreciation rate than other markets. 

I am interested in starting with wholesaling until I have enough capital to buy and hold.

The 25% exemption noted above is designed for relief from market appreciation not capital expenditures.

Is there another way we can or should be reporting his earnings with us so he can offset his capital gains with his other capital losses? 

How is this done in regards to short term capital gains, recording the deed?