Getting a Discount on your Future Retirement Home

This is a great article from a local title company which describes some of the more interesting aspects of the ‘1031’ tax exchange rules. I am intrigued by this allowance for a couple of reasons…

1. If you need to move out of your primary residence and want to hold it as a rental property, then that might be a
great strategy right now.

2. I REALLY like the idea of liquidating investment property and rolling it over into a home that you might like to retire to in future. You can thus defer your capital gains, and as this article describes, purchase your future retirement home, rent it out for 2+ years to enable it to meet the investment property definition for your 1031 exchange and then potentially move into it in your retirement, essentially converting it into your primary residence.

As you know, REALTORS can’t give you tax or legal advice, only a tax professional can do this. So you should consult one to ask how this might apply to your personal situation. If you decide it’s helpful… then I’m ready to go to work to help you find that perfect retirement home.

Personal Residence to Rental

Sonoma County truly is still ‘ON SALE’ and our prices are better than we expect to see again. Take advantage of our wonderful market, terrific interest rates (down to almost 3%!), lock in at a lower property tax base and buy your future retirement home now! We have a strong rental market here and I think this all could combine to create ‘The Perfect Storm’ for your retirement and tax planning.