Previously, rental or otherwise business property that was involved in a like-kind exchange, converted to personal use, and used as a primary residence could be sold and would qualify for the standard exclusion of gain ($250,000 on a filing-single return, or $500,000 on a married filing jointly return). Current tax legislation, while not forbidding such practice, now creates a 5-year waiting period. Therefore, in order to claim the exclusion of gain upon the sale of a personal residence, the property must not have been involved in a like-kind exchange within the past 5 years.

Please contact us if you have any questions regarding current tax provisions or your current tax situation.

NOTE — The information above relates to changes in federal tax regulations. State regulations may differ. Please contact us for more information.