Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I really have read through all the previous posts on this question and think my question's a bit different.

I own a rental property. My current tenants are my parents. I want to free up my equity and use it to buy a primary residence for myself and my fiance. I'm seeking to avoid the capital gains.

My idea is to use the rental exchange procedure to sell the rental to my parents, take the money, by a new rental property then immediately move into it myself. Presumably, after 2 years, it becomes my primary property. If it makes any difference, I can buy the new rental property, rent it to my fiance and then move in.

Is this Kosher?
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.