US HOMEOWNERS Watch OUt if there was a 1031 Exchange

What happened to my tax free house?
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The US and Canada have a completely different method of dealing with the tax free sale of a unit.  In Canada, if you moved into a house that was rented and lived in it for two years, the property could become tax free.
In the event that you had rolled one rental into another in a section 1031 tax deferred exchange, if you moved into the second rental for two years, the whole building qualified for the $250,000 per person tax free exemption on the family home.
What this means in general as I read it is that the owner of a principal residence acquired as part of a like-kind exchange now has to live in it for Five full year after the date of acquisition to qualify for the $250,000 per person tax free sale.
This only applies to a limited number of people, but if it is YOU, it could be devastating.
See new paragraph (10) in section 121(d) .
A solution if you have to move is to rent the house out again and then sell it in another 1031 exchange.  Then convert the NEW rental into a primary residence and Move into the new house and make sure you live in it for five years.
For this one you will likely need help.
Answers to this and other similar  questions can be obtained free on Air every Sunday morning.
Every Sunday at 9:00 AM on 600AM in Vancouver, Fred Snyder of Cartier Partners and I will be hosting an INFOMERCIAL but LIVE talk show called "ITS YOUR MONEY"
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Local phone calls to (604) 280-0600 - Long distance calls to 1-866-778-0600. 
Old shows are archived at the site.
This from ask an income tax immigration planning and bankruptcy expert consultant guru or preparer  from www.centa.com or www.jurock.com or www.featureweb.com. Canadian David Ingram deals daily with tax returns dealing with expatriate:
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Disclaimer:  This question has been answered 
without detailed information or consultation and 
is to be regarded only as general comment.   
Nothing in this message is or should be construed 
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exists between the reader & the author and any and all 
non-contractual duties are expressly denied. All readers should obtain formal advice from a competent financial, or real estate planner or advisor & appropriately qualified legal practitioner, tax or immigration specialist in connection with personal or business affairs such as at www.centa.com.
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