Owned house for less than 2 years - 1031 exchange?
My wife and I bought our first house about 8 months ago. It turns out it's not the right fit for us (for many reasons). Because of this, we want to sell it and move to the suburbs on the other side of town and be closer to our families and where we grew up.
Because the market in our city is so incredibly hot right now, we will have gained upwards of k from the sale once we do it. After selling expenses, I've figured we would owe around 00-00 in capital gains taxes because we haven't owned our house long enough.
Our realtor mentioned 1031 exchange, a section of the IRS code that would allow us to do a like-for-like swap with deferred tax on assets. Has anyone here tried this? As far as I can tell it's for business and not personal assets. It also just sounds shady as heck.
Thanks!
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Yes, your realtor is a moron. (I am a realtor, and sorry you have such a bad one)
Every industry has its good and bad. You really should find a new realtor, a good one.
You know the 1031 exchange is for rental property only. And that saving 00 isn't worth staying in the house to complete the two years required occupancy.
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