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About wexeter

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    San Diego, California
  1. Hi Randian, No, I'm sorry, that is not correct. There is an exception contained in the modification to Section 121 so that if the homeowner moves out and converts their home to any other non-qualified use AFTER it was a primary residence the homeowner will still qualify for the tax free exclusion under Section 121 provided they meet all of the other requirements under Section 121. Read Section 3092 in the Housing and Economic Recovery Act of 2008 for verification.
  2. The Housing Act of 2008 has made some changes to Section 121 of the IRC. The changes to Section 121 reduce the amount of capital gain that taxpayers can exclude from their taxable income based on the amount of time that their personal home was used as investment property.
  3. Here we go again. The Housing and Economic Recovery Act of 2008 has modified Section 121. The modification essentially limits the amount of gain that a taxpayer can exclude on the sale of his personal residence based on the amount of time that the property was held as investment realty before it was used as their personal residence.
  4. The IRS has recently issued guidance in the areas of vacation property, second homes and converted primary residences in terms of what type of property would qualify for 1031 exchange treatment and holding requirements. Review Revenue Procedure 2008-16 at http://www.exeter1031.com/1031_exchange_re...re_2008_16.aspx. I'm posting this link for anyone that has subscribed to this thread.
  5. You will be fine if you rent out the propety as long as you have owned, treated and lived in the property as your primary residence for 24 months out of the last 60 months. It's what I call the 60 month look-back. You look back 60 months from the date your sale transaction closes and as long as you still satisfy the 24 months out of the last 60 months requirement you are in great shape.
  6. Yes, you are correct. It is probably too late for this particular transaction, but wanted to post a response for future searches. Your friend would have to live in the propert for at least 24 months out of the last 60 months in order to qualify for the 121 exclusion. In this particular case, your friend has sold his rental property via a 1031 exchange. Your friend can identify and acquire another like-kind replacement property as part of the 1031 exchange. The replacement property should be held as investment property for at least 12 to 18 months or more in order to qualify for 1031 exchange treatment. Once the property has been held for 12 to 18 months or longer your friend can move into the property and convert it to his/her primary residence. Your friend would have to continue to own the property and live in the property as his/her primary residence for 24 months and then he/she would qualify for the 121 exclusion. The 121 exclusion will only exclude capital gain taxes; it will not exclude any depreciation recapture charges if any.
  7. I've had great success with eFax. You can customize the results, especially receiving to multiple email addresses if you travel alot or what other people to receive you faxes as well.
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