Hello, newbie question here.. If we rented out our basement and lived in the main living area ourselves, can that house qualify for a 1031 exchange when we sell it
Not the percentage/pro rats share you live in......but you’d get the section 121 exclusion for that, living there at least 2 years.
@Nilofer Sickander @Kevin Phu will either of you be making more than 250,000 (500,000 if you owned with your significant other) profit when you sell your personal residence? If not why do you want to 1031 exchange the property?
If yes, are the people you are renting your place have a signed lease? How are they paying you? Either way, I would partner with an accountant and see how to structure it so if you are making more than 250,000 profit as a single filer, that you could put the remaining profit into your next investment.
Kevin, I can partner you with someone if you want because I know he knows CA RE taxes exceptionally well.
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