Newbie re-locating from Houston to Austin

[Tillman Maclaskey]

Hey every one. My name is T Jay Maclaskey. My wife and I bought a 40 acre property we lived on and based an Ice Sculpting and wedding venue business from for 20+ years. The city has moved our way and we are selling it to move to Austin/Hill country to be near our daughters and re-create our business. We'll be looking to add rental properties to our portfolio and set up the business' as legacy's for our daughters. Not so much work with some income. We are checking into a 1031 to defer as much tax as possible so will be buying a lot in a flurry of activity. We have a good real estate agent and a 1031 agent. Any advice or help will be appreciated.

[Steven Hamilton II]

Originally posted by Mehran Kamari:

Welcome to BiggerPockets @Tillman Maclaskey !
Awesome to hear the city has moved your way, you must be sitting on a gold mine!

Like Ellis mentioned, 1031 exchanges are meant for exchanging investment property. Maybe you can consult with your accountant to see what kind of creative options you have at your disposal. Maybe @Steven Hamilton II can weigh in.

@Bill Exeter will correct me if I answer this incorrectly as he is definitely a 1031 expert. Your Home sale exclusion should help you; however, depending upon what percentage is business use you may be able to exclude most of your gain that way. Anything you can't, you may be able to 1031. The issue stems is mixing the usages. Always avoid that if at all possible.