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Author: endorphin Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 123001  
Subject: Rental Prop Exchange or Conversion Date: 3/16/1999 10:02 PM
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Q1: I would like to sell a rental house but don't want to pay capital gains tax on the sale. I read about a tax-deferred exchange and it sounds like a good idea, however I want to move into the replacement property as soon as possible after the exchange. Any guidelines as to how long the replacement has to be rented before converting into a primary residence? Any chance renting out the lower level of the replacement property for a year might qualify?

Q2: Are there any other ways to get out of a rental without incurring capital gains taxes?

Q3: Are there any rules about depreciation recapture that may apply to converting a rental house into a primary residence?

Q4: Once a rental property is converted into a primary residence, and the owner meets the 2 year residency rule, can it be sold without tax on capital gains under $250000 just like any primary residence?

Please help with my headache!
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