Message Font: Serif | Sans-Serif
No. of Recommendations: 2
There's a lot of posting on this subject, so I hope you will be patient with me on this. I've gathered I'm going to need a professional but was hoping to get a few general answers to my questions here.

You are ahead of the game by realizing you will need the services of a trained, experienced tax professional.

A real estate agent who would like to sell our lot (for obvious reasons) has said do an exchange. Buy a home in Reno with the proceeds and rent it out for a year, then we can move in and our proceeds will have been shielded from taxes.

I'll cut to the chase of your attempt at a like-kind exchange. In order to achieve a nontaxable exchange, one of the requirements is that the taxpayer's intent be that the property exchange be related to investment, trade, or business. In your example, the IRS can argue that you never intended to use the Reno property as a rental. Thus, your exchange would be deemed unqualified.

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.