Get Inman via Facebook Messenger
Our top headlines delivered once a day.
by CareyBot

DEAR BOB: My wife and I plan to use our home equity to purchase an investment property. We wanted to do an Internal Revenue Code 1031 tax-deferred exchange, but I recently discovered we can't do such an exchange with our personal residence. So we now are thinking of moving out of our primary residence and renting it for a while so we can later do an IRC 1031 exchange. How long must we rent the house before exchanging it to defer the tax? --Gincy H. DEAR GINCY: The IRC 1031 statute and regulations don't specify any minimum rental time after converting your personal residence into rental property before it can qualify for a tax-deferred exchange. Purchase Bob Bruss reports online. Most tax advisers suggest renting your former home at least six to 12 months (to show rental intent) before maki...