What must I charge for rent to make a 1031 exchange?
September 13, 2006
Date: Sat, 17 Jun 2006
If I make a 1031 exchange and buy a condo that I rent to my son, what is the amount of rent I must charge?
Date: Fri, 07 Jul 2006
The rent has to be at fair market value based on similar properties in your area. The real estate agent who is helping you with the transaction may be able to help you compile information supporting the amount you charge. Make a written lease. (Why are you creating additional risk for a tax-sensitive transaction?)
We have more answers to frequently asked real estate tax questions! We also offer up-to-date information about new tax real estate tax developments in Michael Gray, CPA's Real Estate Tax Letter.
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