Slow market not good for tax-deferred exchange
Investor will lose benefits if she can't find a renter soon
By Robert Bruss, Tuesday, September 25, 2007.DEAR BOB: About six months ago, I completed an Internal Revenue Code 1031 tax-deferred exchange, but I have not been able to rent the acquired house due to an oversupply of rentals in my area. Homeowners are having difficulty selling and are trying to rent while waiting for the sales market to improve. I am running out of money for my mortgage payments. Can I move into the house and rent my old home, which I can rent cheaply and still have a positive cash flow? Would I lose my IRC 1031 tax savings? --Dee D.
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