[TiểuHồLy]

Why not ask your sister? She probably knows everything unless she has tax advisor ...lol...

I don't research anything that I don't need so I only focus with Primary resident issue.

I used to offer 5k-50k below the asking price in order to wait for counter offer for 2 years. Then I gave up. However, in 2012 I got a hook up with realtor agent that happened to be my old friend, that's where she 's on my side to help with counter offer. If you don't have a good agent, they don't really care if you can buy it or not.

The key is primary resident is waive capitol gain tax of 250k for single and 500k for couple. So no matter how she keeps trading the new rental property, she would have end up with tax when she no longer own any rental property. Even her kid inheritance rental property, the kids have to convert the rental to primary and live over 2 years to get away from tax.

Trading new rental property is complicate. I don't really know much.  I think you have to announce new rental property in 45 days then close out in 180 days but there is still tax issue. I have other job, this is not benefit for me, no time for it.

Case 1
Let say she sold a rental property at 450K when she bought for 100k
-Bought 100K
-Sold 450K
-Gain 350K
-Got a new rental property for 500K (cash 50K + 450K)
-Tax: 450k - 100K(initial invest) - 50k cash = 300k < tax
---Short-term gain tax (less than a year own) = 10-37% whatever total with other income
---Long-term gain more than a year = 15% or 20% depend on your income

-If you don't want to pay tax on 300K gain, you want to get 800K new property....That's what I guess, I may be wrong.

Case 2
-Bought 100K
-Sold 120K
-Gain 20K
-Got new property 140K (120k + cash 20k)
Tax: 120k - 100K - 20K = 0 --> no tax

Most people are into case 2 with it may be your sister.  Case 1 is pretty rare that only happen in 2002 and 2012. And I am happen into case 1. 

Note: I am not expert, you have to do more research because I only focus on primary issue so I know more about it. Tax would apply even you put it as a vacation home.

That's why I was evasive and advised her to discuss the issues with the CPA/tax preparer, but it seemingly received dubious answers, so she kept asking me sometimes. Based on her supplemental information, I assume she would inextricably fuddle up when ending rental properties. 

Yes! Perhaps I don't have a "profit connection" with those real estate agents. From the beginning, I could feel the fishy games, so I persisted in my offer. I was informed that the other offers were about 40% above the asking price. Later, I discovered that the sold price was $5k higher than my previous offer.

I appreciate and will relay these pretty profound tips, brother. She was in case 1 and had a long-term gain similar to yours. Due to her current health conditions, she would like to end the rental investment and determine how much she gains after all those struggling times.

The IRS allows 1031 exchange intermediaries (exchanging a rental property for a vacation or second home). FYI, if needed. 

I missed earning interest without Uncle Sam's ......from Switzerland's banks. Bro! Do you have any foreign or other good advice for investing nowadays? Would you mind sharing?