Only the capital gain allocated to periods of qualified use are eligible for the $250K/$500K Section 121 exclusion.Whether the property was originally acquired in a 1031 exchange or simply purchased for investment rental use does not matter for this new tax rule.Here is an example under the new rules.

If your lender is telling you that your monthly payment will be $1,450, then he is only allocating less than $200 for taxes and insurance, which seems EXTREMELY low.

It depends on what is allocated to building.Also, if hes doing this within a fund he invests in.

He has been helping teach me and is willing to take a chance with me...I have allocated 5k for closing costs, with a small buffer for other fees.

I got a call from a local fire adjustment company who is saying they can help me with the claim and can get me more money to make sure I don't have to cut corners when repairing the damage because of limited funds allocated by the insurance company.

Just something to think about.Generally speaking when I look at a deal that I am going to partner on, I allocate (very roughly) 33% of the deal to finding the deal, 33% to funding the deal and 33% to "working the deal"....And I adjust those up or down depending on the circumstances. 

Because you have lived in that property for 2 out of the previous 5 years you can sell and take the amount of gain allocated to the primary residence portion tax free up to the $500K exclusion limit (if you're married).2.

All expenses are allocated between them.For your personal part - you will probably stay with the standard deduction and essentially throw away 1/3 of the triplex expenses, because the new doubled-up standard deduction is likely to be greater than itemized.For the rental part - all income and expenses are reported in a separate place of the tax return, Schedule E.

You can breakdown your total Capital Outlays and allocate the total over 5 years and calculate that into your maintenance and repair expenses.3.

Yes, when I say, "added to the cost basis of the property", that means added to the purchase price of the home and allocated to land/building/land improvements/personal property, which are respectively depreciated over NA/27.5/15/5 years.Hope this helps.