#6: Five Ways To Slash Taxes With The 1031 & 121 Combo
Manage episode 421154754 series 3569550
And Why "You Can't Buy a Primary Home With A 1031 Exchange" Is wrong.
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In this episode of 'Real Estate is Taxing,' host Natalie Kolodij delves into the synergy between two tax code sections: the 1 21 exclusion and the 10 31 exchange. She explains the primary conditions under which each applies and explores scenarios where both can be utilized together in cases of mixed-use properties or properties transitioning between personal and business usage. Natalie also provides insights on handling depreciation recapture and answers common questions about using these provisions to maximize tax advantages. Join her for a detailed discussion aimed at demystifying complex tax strategies in real estate.
00:00 Introduction to Real Estate Taxing
00:52 Understanding the 1 21 Exclusion
02:04 Exploring the 10 31 Exchange
02:39 Combining 1 21 Exclusion and 10 31 Exchange
02:54 Mixed-Use Properties and Tax Benefits
05:04 Switching Between Primary Residence and Rental
10:04 Depreciation Recapture and Tax Strategies
12:39 Common Questions and Scenarios
20:14 Conclusion and Final Thoughts
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