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Your old home is now a rental: use §121 and a 1031 together

Up to $250K / $500K of gain tax-free, the rest deferred with a 1031. See how much, and the last month you can sell.

$
$
$
$
Gain tax-free under §121
$0
Total gain sale price − basis (basis already lowered by depreciation)$0
Depreciation part §121 can never exclude it$0
Rental years before moving in $0
§121 exclusion $0
Deferred with a 1031 depreciation part + the rest, rolls into the new property$0
Taxable gain not excluded$0
Cash you can take out tax-free boot is taxed only above the §121 amount (Rev. Proc. 2005-14)$0
New property basis its price − deferred gain
$0
Tax now with §121 + 1031 if you reinvest everything except the tax-free cash$0
Estimate only, not tax advice. Months are rounded; close to a deadline, count the exact days. Ask a CPA and a QI before you list.

Common mistake: "I rented it out, so I lost my $250K / $500K." Not yet. Moving out and renting does not cut the exclusion, as long as you sell within 3 years of moving out. Wait one month too long and it is gone.

Next step

  1. Check the rental side qualifies for 1031: T220.
  2. Run boot and the 45/180-day dates: T27. Compare 1031 with just selling: T222.
  3. Put every step on a calendar: T227. Pick a QI before you list: T226.
  4. Not sure about a word? T229. Plain home sale with no rental: T22.
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