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Author: Unklesam One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121585  
Subject: Re: Converting Investment RE Date: 3/8/2002 2:16 AM
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Thanks Guys. All of the answers were helpful. I have already purchased a duplex, and plan on doing exactly what I said with taxes.

Some specifics about the sales. Original property sold for $260,000 gain of about 80k. I put the 80k into a new duplex costing 500k and have a loan of 420k. The 1/2 of the duplex I rent is almost twice as large as the 1/2 I live in, and has a different numerical address. My thinking is I can come up with a basis for both and keep it that way all through my ownership. I just need to figure out how to divy up the interest deductions between home and investment. I did use a 1031 facilitator. The law says if I were to have control over the funds at any time I will be liable for taxes on all of it. I also believed the law says you're either taxed on all or none of the gains; no in betweens. One can't decide to invest part and keep another part of any capital gains. Once any part is kept for personal use all of it becomes taxable.

Thank You again and I'll take into account the message board advice next time. :-)


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