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Conversion of Sale of Rental Property Capital Gains to Primary Residence Mortgage Exemption or Deferal

Is there a code that allows for the conversion of the sale of rental property capital gains income to primary residence mortgage as an exemption?   Or if not exemption a deferal much like a 1031 like-kind conversion?

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4 Replies

Conversion of Sale of Rental Property Capital Gains to Primary Residence Mortgage Exemption or Deferal

No. To qualify for a 1031 exchange, the new property must be "like-kind" to the original property, meaning it must be held for investment or productive use in a trade or business

Conversion of Sale of Rental Property Capital Gains to Primary Residence Mortgage Exemption or Deferal

I concur with @Bsch4477, but am confused as to what happened in this situation.

 

It reads like a rental property was sold and then those gains were somehow used to payoff a mortgage on a primary residence (e.g., "mortgage exemption")?

 

Regardless, as mentioned, it is too late for deferral after the sale of the rental property and receipt of the proceeds by the owner thereof.

 

Conversion of Sale of Rental Property Capital Gains to Primary Residence Mortgage Exemption or Deferal

No sale was made yet

Conversion of Sale of Rental Property Capital Gains to Primary Residence Mortgage Exemption or Deferal


@inquisitax wrote:

No sale was made yet


Good because you can't do what you proposed in your original post and defer gain.

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