Updated about 7 years ago on . Most recent reply
1041 exchange question here
Hi BP,
So I know that the jist of the 1041 exchange is that you can keep deferring your capital gains tax when selling properties and buying new ones. I also know I've heard that if you live in a property for 2 of the last 5 years that you don't have to pay any capital gains tax up to 250K if you're single 500K married.
My question: Is it possible to combine the two? So you buy a few properties doing the 1031 exchange each time until you trade up to 4 plex that you fix up on the beach. You live in that 4 plex for 2 years and then sell for a 250K gain. Do you get to keep all of that? Thanks.
Most Popular Reply
you can only 1031 for like kind property so you might be toeing the line with buying a house hack at the end as it would also be a primary residence. However after living there the gains should be tax free.