michael.weck[at]gmail.com wrote:

- quote -

It is not clear to me what you have done. Did you make the
downpayment? Pay all the loan payments, maintenance,
repairs, homeowner's insurance, etc? Why was the house
originally in your father-in-law's name?

- quote -

Not available since it applies only to business and
investment property, not personal residences.

--
Drew Edmundson

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michael.weck[at]gmail.com wrote:
skip

- quote -

Hey Michael, here's just a reminder to jog to your thoughts:
there's probably a gift tax return (due to be filed in the
next three months) by your FIL to report the FMV of the
equity in the house that he gave you and your wife nine
months ago...

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"michael.weck[at]gmail.com" <michael.weck[at]gmail.com> wrote:

- quote -

What you do with the money is irrelevant.

- quote -

If you read further on 1031, you would have noticed it only
applies to business property.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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michael.weck[at]gmail.com writes:

- quote -

No and no. You meet the use test, but not the ownership
test. Section 1031 exchanges can't be used on personal-use
property.

Phil Marti
Clarksburg, MD

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michael.weck[at]gmail.com wrote:

- quote -

is ths your home or an investment property? for all I
remember, the capital gains tax deferral is only for owner
occupied homes whereas 1031 exchanges are only for business
property. Of course in a 5 year time frame you can have
lived in your home for 2 years _and_ have used it as a
rental (i.e. business), but I think that doesn't apply in
your situation.

Maren

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<michael.weck[at]gmail.com> wrote:

- quote -

You seem to meet the lived for two years rule but not the
ownership rule.

A 1031 is not appropriate for a personal home.

Furthermore, a home acquired via 1031 and sold within 5
years does not qualify for the Section 121 $250,000/500,000
exclusion.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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michael.weck[at]gmail.com wrote:

- quote -

It's not entirely clear who quitclaimed what to whom. If
Father-In-Law owned the property originally and quitclaimed
it to you, you have owned the property for only nine months.
You must have *both* owned the property *and* resided in it
to claim the exclusion.

Unless your reason for selling meets one of the defined
unforeseen circumstances, you would not qualify for the
capital gains exclusion at all. Even if it did, you would
qualify only for a reduced exclusion (sounds like 9/24 of
the limit).

- quote -

Section 1031 is not for property that is your residence.

--
Chris Green

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- quote -

Well, first of all, you don't qualify for the exclusion
because you have not owned the home for 2 years. And you
do not qualify for a 1031 exchange as this is your personal
residence.

So unless your move meets an exception, you have complete
capital gains to pay.

Helen, EA in PA
Director, NAEA; Immediate Past President, PSEA; Tax Expert, AOL
Enrolled Agents - THE Tax Professionals

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We have our current home for sale and expect to make some
money on the sale of it. I have read about the 2 year rule
for living/owning a home in order to avoid paying any
capital gains tax (250ksingle/500kcouple limit). However
here is our situation...

This house was built in my father-in-law's name 2 and 1/2
years ago. We have lived in the house since it was built, so
for that period of 2.5 years. We did a Quit Claim Deed 9
months ago and assummed the mortgage from his name to our
name. We are planning to use the proceeds we get from the
sale to buy another home that will also be our primary
residence. Does this allow for any wiggle room on the
capital gains tax for the sale of our home?

If not, is the Section 1031 Exchange our only option to
defering the tax?

Best Regards,

Michael Weck
Orlando, Fl

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