Q: Can we roll over the sale of our rental house into down payment when we've been living in a rental ourselves 7 years?
We haven't lived anywhere but our current rental since we moved. We have been depreciating for taxes.
A: I believe what you're looking for is called a Section 1031 "Like-kind Exchange." Here is an IRS publication on the issue that goes into the transaction a little https://www.irs.gov/uac/like-kind-exchanges-under-irc-code-section-1031
There are many practitioners who focus in these kinds of exchanges, and I'd recommend paying for one. For these kinds of transactions, there's a lot of rules that need to be followed and it's very easy to make a mistake. Errors can be very, very expensive to correct.
If you're looking to simply sell your rental, there's also a handful of issues involved on your tax return and I'd recommend seeing an accountant to help you with those. Turbotax won't cut it, since there's another set of tricky rules that can apply. Again, spending the time to do your return properly for these more complex transactions will save you a tremendous headache (and pricey one too).
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