and ill try my best to answer.
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/.ㅤ — 4 months ago(November 23, 2025 01:58 PM)
I involuntarily converted a principal residence into a rental property mid-year due to a job relocation, then sold it 18 months later while it was still a rental, but the original replacement period for the prior home’s gain rollover under old IRC §1034 technically never expired because I never bought a new principal residence. The IRS says the §1034 election stays open indefinitely, but now §121 and §1031 are both potentially in play with different holding periods and basis rules. How does my CPA handle allocating basis, recapture, and which exclusion (if any) takes priority?"
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