Legal Question in Real Estate Law in California
Need advice. I own two rental homes. Once was my primary residence up until April of this year. I'd like to sell both to purchase a new primary residence for my family, as I'm currently renting myself. One of the two rentals will make a probably gain of $186,000, so approx. $45k tax (State of CA) and had $84k of depreciation. The other will be a probable loss of $100k (State of MT) and no depreciation has been taken as we just started renting this out. Wondering if it makes sense to explore the option of offsetting one with the other if we sold both in 2016? Or, other option is just doing a 1031 exchange for the CA home to eventually move into it and make primary after 2 or so years. I don't know enough about offsetting, so can't determine if this qualifies. Thank you so much for your time and this great advice.
1 Answer from Attorneys
This question would be better answered by a good tax accountant.