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Dream will come true...

select-fire
Was at a large Christmas party a few nights ago and ran across a CPA. Told him I was about to sell a rental property and retire. However I was not happy about paying the capital gains on the property. He pulled me aside and ask if I would consider a 1031 exchange of property. Not a clue what he meant so he explained. IF I buy another rental property, I roll my sale property over into it. The light bulb went on.... I ask him any rental property? like a Lake House? His answer was yes.. but you have to make it available for 2 yrs. prior to moving in. Then no capital gains on the sale property. Money cannot touch my hands on a sale but held in escrow. I have 6 months from the sale to close on a lake property. I am one happy camper always wanted a lake home and now that can happen.
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5 comments

Date Votes
  • SCOUT5
    Like kind investments. One of the best things about property as an investment is you get to choose when you pay the taxes. Eventually all the taxes get paid even if it's after we're gone, but we get to decide when. That allows the money to be reinvested without taking the taxes out. much like a 401k that is payed in pretax and taxed on withdrawal.

    A good accountant is one of the best bargains a man can find.
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  • SCOUT5
    I forgot to ask, what lake? With you and your wife both retiring and a new boat you had to have a lake house.
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  • Rocky Raab
    If you rent it as a VRBO, I believe you could even use it yourself without "moving in" as long as it was short term. If questioned, call it "routine maintenance visits."
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  • mogley98
    Sounds like a Gun Broker hang out on the lake to me.
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  • select-fire
    SCOUT5 wrote:
    I forgot to ask, what lake? With you and your wife both retiring and a new boat you had to have a lake house.


    Murray, Wateree, Marion or upstate SC , NC.. Will be lake front with a dock.
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