Nov

28

Can I do a 1031 Starker Exchange when I sell my home and buy a new one?

Filed Under Home :: Real Estate 

BugsySkybone asked:


I have a friend who wants to sell her house in Chicago and move out of state. Can she sell her home in Chicago, buy a new one and defer the taxes on the proceeds from the sale of the Chicago property(via a 1031 Starker Like-Kind Exchange) by rolling the money into the new property? Or is a Starker limited to investment and/or business property?

Raul
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    • Comments

    No Responses to “Can I do a 1031 Starker Exchange when I sell my home and buy a new one?”

    1. a_j_edwards2002 on November 29th, 2010 2:48 pm

      Yes you can, I would recomend that you get an agent that deals w/ 1031’s on a regular basis. You can find some good agents on 1031x.com One thing you must do is find your next property fairly quickly because you only have 160 days to find your new property. If you don’t you’ll get stuck paying taxes to the man.

    2. smilin1 on December 2nd, 2010 7:14 am

      Yes she can. But check the IRS code. Strict rules apply. She can’t have the proceed check made out to her for the first sale it has to be held in escrow.

    3. Michael O. on December 5th, 2010 5:03 am

      No she can’t, if the property is her residence. The 1031 is limited to business and investment property. But if she lived in the house 2 of the last 5 years, there is another Internal Revenue Code provision that shelters much or all of her capital gain, I believe it is 250K for a single person, 500K for a couple.

    4. babygirl07_202 on December 7th, 2010 5:45 pm

      what r u talking about