Invest in Real Estate
Converting a Primary Residence into a Rental
The IRS gave guidance in Revenue Procedure 2005-14 on how to report
a conveyance of property used as the taxpayer’s primary residence
and then held as investment property.
A taxpayer may convert a primary residence into a rental and then sell it and
benefit from both Internal Revenue Code (IRC) §121 (primary residence)
and IRC §1031 (investment property).
The taxpayer must comply with all rules in both sections to qualify.
When it comes to investing, the word “diversify” plays a heavy role, “never put all your eggs in one basket.” Diversification protects you from losing your asset when the market swing. Investing in Real Estate is one way to diversify your portfolio.
Buying real estate is about more than just finding a place to call home. Investing in real estate has become increasingly popular over the last 50 years and has become a common investment vehicle. Although the real estate market has plenty of opportunities for making big gains, buying and owning real estate is a lot more complicated than investing in stocks and bonds. READ MORE
What is a 1031 Tax-Deferred Exchange?
How can I convert a Primary Residence into a Rental?
What is the definition of Like-Kind Property?
When do I need to identify a Replacement Property?
How to find the Right Replacement Value?
Can I do Partial Exchange?
Answers to these questions are in this guide
Download the guide for your record!