Updated almost 5 years ago on . Most recent reply
My keep or sell dilemma
I purchased a property in Portland, Oregon in 2013 and lived there for about a year. I moved during 2014 to California where I now reside. I've kept the property as a rental since moving. The rent covers the mortgage and expenses, so it hasn't been a real concern.
With the market being up and rent control, I'm thinking I should sell the property to take advantage of the opportunity.
My dilemma is capital gains tax because I believe I would get it for both Oregon and California which might ruin the idea of selling.
A 1031 exchange seems like the only way to avoid capital gains tax, but I'd prefer something in California closer to me if it were even an option.
Does anyone have any advice on which direction to go? Are there other avenues to avoid capital gains tax (move back for 2 years?) lmk if there are any questions.
Most Popular Reply
You have a very common situation here. Hire an experienced broker who is versed in 1031 exchanges in the Portland market. Have that broker co-op with a broker in the market you wish to move your capital/equity into. They will work together to execute the disposition and acquisition within the exchange timelines. We've done this several times just in the other order - clients exchanging out of CA and into OR.
- Cory Carlson
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