Updated almost 5 years ago on .
Most recent reply
presented by
Tax Questions for a CPA
Hi Bigger Pockets members,
I've been on Bigger Pockets for a couple years educating myself on Real Estate investing. I am just recently joining the platform as a CPA and looking to answer any questions you might have regarding tax accounting for your real estate ventures, or just general accounting questions!
I run my own tax practice outside of Philadelphia and also invest in Real Estate in and outside of Philly. No questions off limits!
Most Popular Reply
- Qualified Intermediary for 1031 Exchanges
- St. Petersburg, FL
- 9,539
- Votes |
- 9,218
- Posts
@Joel Balderas, Everyone's right that you cannot do a 1031 exchange to purchase your primary residence. The 1031 must be investment property for investment property.
However, It is perfectly acceptable to do a 1031 exchange and hold that new property for investment and then later convert it into your primary residence. That conversion does not trigger a recognition of gain. It's all about what your intent is. And there is a safe harbor for demonstration of that intent in Rev proc 2008-16 I believe.
You can do it. You just need a little runway.
- Dave Foster
