Search found 5 matches

by BilboSmaug
Thu Mar 14, 2019 12:28 am
Forum: Personal Finance (Not Investing)
Topic: special case duplex tax implications?
Replies: 1
Views: 265

special case duplex tax implications?

So it seems fairly clear cut that if you buy a duplex and rent out half of it while occupying the other half that you can deduct the usual investment expenses for half of the property (e.g. property tax, mortgage interest, depreciation, divided by two, obviously). 1. It also seems that you can occup...
by BilboSmaug
Sun Jun 10, 2018 2:57 pm
Forum: Personal Finance (Not Investing)
Topic: selling home fractionally twice with TIC to use capital gains exemption twice?
Replies: 7
Views: 690

Re: selling home fractionally twice with TIC to use capital gains exemption twice?

MarkS wrote:
Sun Jun 10, 2018 2:34 pm
It doesn't sound right. You should research the IRS "Step Transaction Doctrine".
Thanks, that makes sense.
by BilboSmaug
Sun Jun 10, 2018 2:50 pm
Forum: Personal Finance (Not Investing)
Topic: selling home fractionally twice with TIC to use capital gains exemption twice?
Replies: 7
Views: 690

Re: selling home fractionally twice with TIC to use capital gains exemption twice?

How do you sell half the house? I don’t see how the levels could be sold separately unless it was converted to a condominium. If it was split then you have one residence and one additional non residence property. Gill Tenancy in common allows for fractional ownership as I understand it. (https://ww...
by BilboSmaug
Sun Jun 10, 2018 2:03 pm
Forum: Personal Finance (Not Investing)
Topic: selling home fractionally twice with TIC to use capital gains exemption twice?
Replies: 7
Views: 690

selling home fractionally twice with TIC to use capital gains exemption twice?

Say a couple owns a two level home that is worth 1.4M now and was purchased for 200k. So the capital gain is 1.2M (no maintenance of note). Can the couple sell half the house to a friend for 700k, take the 500k primary residence exemption on that sale, then live with the friend (TIC, tenancy in comm...