"Herb Smith" <smithff33[at]aol.com> wrote:
- quote -

Here is the senario I am thinking about. see if it makes
sense. I sell my primary residence and get the tax exampt.
Then move into rental property. Doesn't the rental property
become primary residence after 2 years of living? Since it
becomes primary residence, should it be tax exempt when it
is sold?

thanks for your info.

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"Jo Firey" <jofirey[at]netzero.net> blurted out
- quote -

There are some companies that provide that service, often
for a flat fee. Since they do them often, that may be a
better alternative than to go to a lawyer who does them
infrequently.

Stu

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"John" <JohnSmith[at]juno.com> wrote:

- quote -

You can read about "like kind exchanges" in IRS Pub 544,
which generally will require a third party facilitator to
handle both ends of the exchange. If you sell a property
yourself and then buy a comparable property you HAVE NOT
created and exchange, just a taxable sale.

Neither property can be a personal use property. If you
intend to convert the rental or investment property received
to personal use, you may taint the entire exchange. ALso, a
like kind exchange does not EXCLUDE the taxes, merely defers
them until a later sale of the property received.

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"John" <JohnSmith[at]juno.com> wrote:

- quote -

Wish I had a penny for every dollar in taxes spent by those
who believed it was that easy in the last year alone.

It can be done. With the help IN ADVANCE of a qualified
real estate attorney. You cannot handle it on your own.

I couldn't handle it on my own and I've got an MBA and I've
been a CPA for 30 years. Only advantage that gives me is I
know who the good real estate lawyers are around here.

Jo

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I have a question about rental property.

I heard that there is a rental exchange? selling rental
property and buying another property, then tax is deferred?
what if I the new rental property becomes primary residence
after a couple of years. Do I still pay capital gain? or
will be exempted?

thanks

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