0
If you purchase a rental home on a 1031 exchange is it ever allowed to be owner-occupied without being penalized?
Wiki User
∙ 18y ago
Yes, you can eventuraly live in the home you originally purchased to be used as a rental. The rule is: You can buy the home and derive income from it for as long as you like, even live in it for no more than 2 weeks per year. This is fine for vacation homes purchased for income. You can deduct all costs of the home and the expense of visitation (air travel, auto rental etc.) but you must show a profit (and pay some taxes) in any 2 of the 5 years of ownership for all your decuctions to be allowed by Uncle Sam. When you decide to move into it as your legal residence, you should show a change of ownership (from commercial to residential) so the IRS will know it will no longer be used s a commercial property. You also could transfer the title to a trust, naming yourself as the Trustee, and occupy the home; paying rent to break even. You'll get more details at: www.usefulpublishing.info and through your attorney. Good Luck!
Wiki User
∙ 18y ago
Add your answer:
Earn +20 pts
What did the Twenty-first Amendment allow US citizens to do?
it allowed them to manufacture, purchase, and consume alcohol.
What is the period of time allowed in payment of bills of exchange?
usance
What did the peasants give to the lord in exchange for being allowed to live on his land?
peonage
What organization was created that allowed the government to investigate compaines?
The Securities and Exchange Commission.
What purchase allowed the US to have a direct railroad line across the southern territory?
The Gadsden Purchase.
Bank order that allowed merchants to pay for goods without coins?
bill of exchange
What is the difference between a floating and a pegged exchange rate?
pegged exchange rate is officially fixed in terms of gold or any other currency in foreign exchange. Floating exchange rate is flexible rate in which value of currency is allowed to adjust freely determined by the supply & demand of foreign exchange
Can you fight in NHL slapshot?
Fights are sometimes allowed in the NHL,only one on one and both participants are penalized.
The Silk Road was important because it allowed for the?
Exchange of goods between Asia and the Middle East.
What was true about President Jefferson's decision to buy the Louisiana Territory?
He was unsure if the purchase was allowed by the constitution.
The Adams-Onis Treaty allowed the US to purchase Florida from who?
Spain
Land act of 1800?
Allowed settlers to purchase land on credit.
