Live Support Chat

Daily Archives: November 16, 2017

Can You Exchange Your Primary Residence Under Section 1031?

Can You Exchange Your Primary Residence Under Section 1031?

Section 1031 of the IRS code explicitly prohibits private residences from eligibility for a 1031 exchange. So the intuitive answer is no. But if your home has extensive equity, you may be looking for ways to avoid a hefty tax bill when you sell. Of course, you can use the 250,000/500,000 exclusion permitted by tax code on the sale of your primary residence. But that still leaves any equity above and beyond that amount (after you’ve subtracted the original purchase price and any capital improvements) exposed to capital gains taxes in the year of the sale. If you want to ensure tax deferral of all capital gains taxes, then a […]