I’ve been lurking here on and off for a while and am hoping to get some advice before seeking out a CPA.
I bought a condo in the Bay Area back in 2000 or so. I lived in it over 5 years and then moved out during the recession to move to Sacramento for a new job. At the time it was under water so I rented it out. The tenant has been there over ten years now and it’s been a really easy land-lording experience for the most part.
Recently I got married and we are saving for a house. We currently rent. I was wondering if there’s any way to sell the condo and use the equity to buy a primary residence without paying capital gains tax. Using the equity would save about two years off of our purchase horizon. I’m only slightly familiar with 1031 exchanges, but I’m thinking that may not work here since the new property won’t be a rental.
Thanks in advance for any ideas.
@Brock A. correct no 1031 here because it would not be a like kind property (rental for rental) not sure what the time limit is but you could 1031 into a rental house in Sacramento rent it and just wait until the time limit passes and move into it.