I have the same situation, except I have a small mortgage on my parent house, that I pay. I did as the turbo tax response said. Now however I need to sell the house and by them a smaller condo, I plan to roll the profits from this home into the condo. My real estate agent suggested doing a 1031 exchange tp ease the capital gains. But I don’t have the property listed as an investment property. Would it still be eligible? Or will I just owe the capital gains even though I am reinvesting?
