All Forum Posts by: Mike H.

No need to run it by wifey. Justin's suggestion is well-intentioned but very counter-productive. It will screw up your eligibility for an exclusion by triggering the nasty "non-qualified use" rule. That little-known rule will force you to pay a portion of capital gain tax even if you could avoid it otherwise. Do NOT move back unless necessary for life reasons.

However, you actually might have a reprieve from the 9/10 deadline due to Covid. There're IRS Regulations that allow for an exception ("reduced maximum exclusion") under "unforeseen circumstances." While there is no black-and-white safe harbor rule for your circumstances, I have a feeling that we could interpret these Regulations in your favor. 

This would be controversial and therefore potentially subject to an IRS challenge which you could win or lose, but if this happened to one of my clients and the client felt good about taking some risk, I would pursue this route. Discuss with a good accountant specializing in real estate such as my colleagues contributing to this forum.

@Mike H. The 1031 won’t work if you’re buying the lake home “with family”....you’re selling as an individual, your replacement property in a 1031 has to be titled the same way (in the same name),  no partners.

@Mike H. I’m not a tax attorney but I believe you could temporarily move back in (just put a bed in and sleep there. Until you close that way if you go past the Sep. date, you will have homesteaded 2 of the last 5.

I know its not a perfect situation for a family but might be worth the tax savings.

@Mike H.

2 out of 5 is a hard rule number.

You can potentially to a 1031 if this was a rental property for the past 2 year 10 months if you buy another investment property. purchasing a second home won't help.

maybe also look into a qualified opportunity zone.

Yep, the 3 year deadline is a hard number.  But as an aside, I’m not sure how hard anyone tries to verify your initial move out date.  Yes, you could 1031 it, assuming you set it up, but it’d have to be for an investment property.  I’d rather pay the cap gains than make a bad buy though.

@Mike H. you bet!

Gator Heating & Air has good prices. It’s hit or miss the quality of the technician that shows up however. 

My other recommendation is Bounds who is a little pricier,-though my impression is their technicians as a whole are at a slightly higher standard.

@Clarence Harris I'm guessing their business may be or was so busy at that time they just couldn't get to the repairs. They used to have a dedicated repair department. Thanks for the heads up. My first recommendation however Chad Vercher with Energy Roofing, he definitely can handle the repairs right now.

Hi Shawn, called Energy and they came out next day.  Gave me a proposal a few days later.  Appreciate your help.