Posted by Diane (TX) on March 11, 2003 at 19:44:35:
Gain on the sale of your home will be tax-free up to $250,000 (500K if married filing jointly) if you meet 2-year use and ownership tests. If you sell the investment property and don’t reinvest using a 1031, you’ll owe tax on the gain.
If you have a lot of equity in the investment property, maybe consider using a home equity line on the inv. property to put toward the residence purchase. This would minimize the tax impact, since loan proceeds aren’t taxable.
I am looking for any information on real estate consolodation. I own a home and investment property and need to sell both and consolidate the propety into a primary residence. I’m not clear what is out there today. I am mostly worried about taxes and using a 1031 exchange, or what ever minimises the tax impact. Can anyone point me to any information, so that I can enter this challenge with some knowledge. I have been taken advantage of in the past and I dont need to lose more money.