My wife and I bought our first house about 8 months ago. It turns out it's not the right fit for us (for many reasons). Because of this, we want to sell it and move to the suburbs on the other side of town and be closer to our families and where we grew up.

Because the market in our city is so incredibly hot right now, we will have gained upwards of $30k from the sale once we do it. After selling expenses, I've figured we would owe around $1500-$2000 in capital gains taxes because we haven't owned our house long enough.

Our realtor mentioned 1031 exchange, a section of the IRS code that would allow us to do a like-for-like swap with deferred tax on assets. Has anyone here tried this? As far as I can tell it's for business and not personal assets. It also just sounds shady as heck.

Thanks!

My wife and I bought our first house about 8 months ago. It turns out it's not the right fit for us (for many reasons). Because of this, we want to sell it and move to the suburbs on the other side of town and be closer to our families and where we grew up.

Because the market in our city is so incredibly hot right now, we will have gained upwards of $30k from the sale once we do it. After selling expenses, I've figured we would owe around $1500-$2000 in capital gains taxes because we haven't owned our house long enough.

Our realtor mentioned 1031 exchange, a section of the IRS code that would allow us to do a like-for-like swap with deferred tax on assets. Has anyone here tried this? As far as I can tell it's for business and not personal assets. It also just sounds shady as heck.

Thanks!