I wanted to retire and relocate to another state my rental house is paid off. but my primary residence is not. how can i make the sell of my rental,buy a new home move into so that i can afford to retire and have no house payment with the IRS killing me with taxes
2007-10-18 12:16:03 · 9 answers · asked by H. R. P. 1 in Business & Finance ➔ Renting & Real Estate
Talk to your accountant.
2007-10-18 13:09:07 · answer #1 · answered by godged 7 · 0⤊ 0⤋
Very simple. You can't. Profits on the sale of a personal residence are not taxed as long as you have lived in it as your main residence for two of the previous five years. Investment property is a different ball game. You will be taxed on the difference between purchase price and sale price, PLUS on any depreciation you took to reduce taxes during the years you owned it. Since you have apparently owned it for some time, you will be taxed at the capital gains rate.
The ONLY way to delay any taxation on the profits of the rental property is to buy a 'like kind' investment, and roll the profits into the new venture. This is called a 1031 exchange.
2007-10-18 12:26:54 · answer #2 · answered by acermill 7 · 1⤊ 0⤋
depends on the equity you have in your current residence, and where you are going to retire as to the cost of living ect...You will be hit with taxes regardless, because it falls under the capital gains tax and is counted as income. Sorry. Keep the rental and use that as income to supplement your retirement along w/ any 401's, pensions ect... and the equity from the sale of your residence. Whatever you do, don't use any retirement $ earmarked as retirement (401's, pensions) as you will get slammed with fees. Best advice is talk to a retirement specialist.
2007-10-18 12:30:02 · answer #3 · answered by Anonymous · 0⤊ 0⤋
A rental property qualifies for a 1031 tax deferred exchange. You need to exchange into another investment property to defer the gains. The intention at the time of the exchange is what makes it qualify for an exchange.
You did not mention the time frame for your move. I will assume you move two years or further out.
2007-10-18 12:23:40 · answer #4 · answered by William H 5 · 0⤊ 1⤋
a million. Do realtors handle leases? some specialise in revenues, some specialise in leases. 2. Do realtors refer to a minimum of one yet another? definite, and that they collaborate on itemizing homes, so as that all of them understand what's obtainable. 3. might I could desire to call each and each authentic assets agent interior the county? No, basically %. one.
2016-10-07 04:40:32 · answer #5 · answered by ? 4 · 0⤊ 0⤋
Find a seller in your new state, who will trade both of your properties for his, and give him a few dollars to boot. That way you have had no capital gains, and should be cool with the IRS.
2007-10-18 12:22:00 · answer #6 · answered by thehermanator2003 4 · 0⤊ 1⤋
If you use the proceeds of a sale sale to buy your primary residence the goverment will not tax you for it.
2007-10-18 12:22:14 · answer #7 · answered by kylekd4 1 · 0⤊ 1⤋
this is a simple question, you can not dodge the tax man. pay tax
2007-10-18 12:43:36 · answer #8 · answered by Alpha Bravo Charlie 2 · 1⤊ 0⤋
1031 exchange-Talk to Stewart Title they are worldwide and know how to help you!
2007-10-18 12:33:55 · answer #9 · answered by helprhome 5 · 0⤊ 1⤋