Selling 1 house, buying another
I am selling my home. My only home and buying another the same day in an adjoining town. I've lived there nearly 3 years. I have owned other properties and currently have 1/2 interest in a home which is not mine. My ex lives there. This was a condition of settlement of our divorce. I travel for work, a lot. When not at home I rent it out on Airbnb. Rentals are less than half the year. It went up in value by about double in the 3+ years of ownership. In part because I remodeled it and because it is a popular area. I am buying a home which will use all of the proceeds and a bit more. It is only 12 minutes from each other but the one I'm selling has a partial water view. The one I am buying is 1/2 a mile from water and a bit larger. I expect to rent the new one out when traveling for work as I did the last one. Long run (a few years) I want to retire to the new one and stop working all over the place. I thought I could keep all the proceeds and avoid capital gains taxes using the funds for the new house. I have sold other properties but I did not avoid capital gains on them. Some are saying I don't have to pay capital gains because it is my residence (and only residence) while others are saying that because I rented it out some that it is investment property and I would need to use a 1031 exchange. But can I even do that? Still others are saying that I can't do a 1031 exchange for what is my primary residence and that i can't avoid the taxes on the sale of my ho
