Originally Posted by breakpoint
I would like to know these answers as Im a new LL also. I live in a unit tho.
I have not stayed current on changes in tax law...
The last time I was involved there were several things to consider.
The property was a rental that 1031 exchanged for another rental and then after the tenant moved... the property became a personal residence and had to be held something like 5 years to avoid taxable gains on the 1031 and then there was the $500,000 profit exemption and then there was the matter of depreciation subject to recapture...
It is definitely something that needs to be done right or you will suffer the economic consequence.
I used to do everything myself till I reconnected with a CPA friend from High School to do my returns... For me, it is well worth having the answers to what-if situations so I could plan accordingly.