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?
You'll need to sign in or create an account to connect with an expert.
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
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.
No sale was made yet
@inquisitax wrote:
No sale was made yet
Good because you can't do what you proposed in your original post and defer gain.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
av95
New Member
inquisitax
New Member
Eohx211
New Member
rcdwyo11
Level 1
mjm77
Level 2
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.