Hi - not sure this is the right place to ask this but here goes:
We have an investment property (1 BR condo) in the same city as our primary residence (4 BR condo)
The investment property value has grown from $575K to $900K over the last 4 years since we purchased it. The property is currently rented out (rental income covers almost 95% of monthly costs like mortgage, taxes, HOA, insurance etc.)
My in-laws are looking to spend around 6 months in our town. Originally we got the place for them but since they are only around for 6 months I would rather find them a comparable rental for 6 months.
The exception to this would be if there is any way to use this as an opportunity to convert our rental back to a primary residence so we can sell it tax free in the near future. We are not planning to move from our current primary residence for a long time (possibly never) but would love to cash in on the appreciation by selling the investment property in a few years without paying taxes.
Am I looking for something impossible or is there a way to do this with the help of a tax expert?
Thanks in advance.
We have an investment property (1 BR condo) in the same city as our primary residence (4 BR condo)
The investment property value has grown from $575K to $900K over the last 4 years since we purchased it. The property is currently rented out (rental income covers almost 95% of monthly costs like mortgage, taxes, HOA, insurance etc.)
My in-laws are looking to spend around 6 months in our town. Originally we got the place for them but since they are only around for 6 months I would rather find them a comparable rental for 6 months.
The exception to this would be if there is any way to use this as an opportunity to convert our rental back to a primary residence so we can sell it tax free in the near future. We are not planning to move from our current primary residence for a long time (possibly never) but would love to cash in on the appreciation by selling the investment property in a few years without paying taxes.
Am I looking for something impossible or is there a way to do this with the help of a tax expert?
Thanks in advance.