Can You Turn a 1031 Exchange Property Into Your Primary Residence?

Happy Holidays! In the last episode of the year, Toby Mathis of Anderson Advisors goes through a long list of tax questions from listeners to give quick answers, such as whether you can turn a 1031 exchange property into your primary residence. Submit your tax question to taxtuesday@andersonadvisors.

Highlights/Topics:

• When you gift more than $15,000 a year to one family member, do you have to pay tax on it? Any individual can give $15,000 to another individual without having to submit a gift tax return, but a gift tax return is required if the amount exceeds $15,000
• How do I pay taxes on rental properties that I own in Canada while I am in the United States? The United States accepts Canadian LLCs, but still charges you tax on all income generated from any properties anywhere in the world
• Can I turn a property that I acquired through a 1031 exchange into my primary residence? Yes, you can convert it under Section 121
• What is the difference between a family trust and living trust? Same type of document, but a family trust is irrevocable and for the descendents; a living trust can be revocable and changed

For all questions/answers discussed, sign up to be a Platinum member to view the replay!

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Resources:

1031 Exchange

https://www.irs.gov/pub/irs-news/fs-08-18.pdf

Real Estate Professional Requirements

https://www.aicpa.org/resources/article/tax-rules-for-real-estate-professionals

Entity Formation

https://andersonadvisors.com/entity-formation/

Capital Gains and Losses

https://www.irs.gov/taxtopics/tc409

Toby Mathis

https://andersonadvisors.com/tobymathis-2/

Anderson Advisors

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