Primary residence ki 1031 evaraina use chesara?

[ARYA]

Asking for a friend..

[MiryalgudaMaruthiRao]

ante enti anna

adduce anni houses undakoodadu 

[Kurrodu1]

5 minutes ago, ARYA said:

Asking for a friend..

A primary residence usually does not qualify for an exchange because it is not used in trade or business or investment. That said, that portion of the primary residence that is used in a trade or business or for investment may qualify for a 1031 Exchange.

Ask chatGPT no

[ARYA]

Just now, Kurrodu1 said:

no 1031 is for investment properties.

Ask chatGPT no

Adi telusu bro..

 heard many people used for primary residence too.. want to know how they did

[Kurrodu1]

5 minutes ago, Kurrodu1 said:

A primary residence usually does not qualify for an exchange because it is not used in trade or business or investment. That said, that portion of the primary residence that is used in a trade or business or for investment may qualify for a 1031 Exchange.

Ask chatGPT no

Myan chatGpt gave confusing answer :

 

A primary home 1031 exchange, also known as a personal residence 1031 exchange, is a tax strategy that allows an individual to sell their primary residence and use the proceeds to purchase another property, while deferring the capital gains taxes that would typically be due on the sale of the first property.

Under Section 1031 of the Internal Revenue Code, individuals can defer capital gains taxes if they reinvest the proceeds from the sale of a property into a similar or like-kind property. However, the 1031 exchange is typically used for investment or business properties, not personal residences.

There is a provision under the tax code known as the "safe harbor" rule, which allows a primary home 1031 exchange under certain circumstances. To qualify for this rule, the individual must have owned and lived in the property as their primary residence for at least two out of the five years prior to the sale. Additionally, the individual must purchase a replacement property that will also be used as their primary residence.

It's important to note that there are limitations to the amount of capital gains that can be deferred through a 1031 exchange, and individuals should consult with a tax professional to determine if a primary home 1031 exchange is the right strategy for their situation.

[ARYA]

7 hours ago, Kurrodu1 said:

Myan chatGpt gave confusing answer :

 

A primary home 1031 exchange, also known as a personal residence 1031 exchange, is a tax strategy that allows an individual to sell their primary residence and use the proceeds to purchase another property, while deferring the capital gains taxes that would typically be due on the sale of the first property.

Under Section 1031 of the Internal Revenue Code, individuals can defer capital gains taxes if they reinvest the proceeds from the sale of a property into a similar or like-kind property. However, the 1031 exchange is typically used for investment or business properties, not personal residences.

There is a provision under the tax code known as the "safe harbor" rule, which allows a primary home 1031 exchange under certain circumstances. To qualify for this rule, the individual must have owned and lived in the property as their primary residence for at least two out of the five years prior to the sale. Additionally, the individual must purchase a replacement property that will also be used as their primary residence.

It's important to note that there are limitations to the amount of capital gains that can be deferred through a 1031 exchange, and individuals should consult with a tax professional to determine if a primary home 1031 exchange is the right strategy for their situation.

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