Once they establish the property as their primary residence by living in it for two years, all they have to do is rent it out for two to three years before selling it.
Taxpayers are able to use Internal Revenue Code (IRC) section 121 to exclude capital gains from taxation ($250,000 for individuals or $500,000 for couples) if they’ve used a property as a primary residence for at least 2 of the 5 years before a sale. In some cases, the amount of capital gains they make exceeds those limits.
Sometimes taxpayers can use IRC 121 to exclude their maximum amount of capital gains ($250,000 or $500,000) and then use a 1031 exchange to defer the rest.

If you own a second home and you haven’t met the conditions for a 1031 exchange, but hope to complete one in the future, you can begin preparing for that day by undertaking the following steps:

    ● Limit personal usage to under two weeks per year
    ● Engage the services of a property management company and list the asset for rent
    ● Claim rental income from the asset on two consecutive tax returns

There may be additional steps you need to take in order to convert your second home into an investment asset that qualifies for a 1031 exchange. As always, consult with tax and legal professionals with experience in these matters before attempting a 1031 exchange.

    ● Neighborhood
    ● Tax Rules
    ● Public Safety and Security
    ● Educational Institutions
    ● Job Market
    ● Amenities
    ● Real Estate Comps
    ● Future Developments

Stephen is a REALTOR and Videographer at your service... With the San Francisco and Marin real estate markets still among the most expensive, it is vital to sell your home with a person who will market and promote your property to get excellent results. Crucially, Stephen will enjoy guiding the way to your ambitious goals with a calm, detail-oriented demeanor and will work to exceed expectations. There are many decisions in life, but your home is paramount so team up with the right person. With a full-service approach, he can assist you every step of the way through the preparation, negotiation and transaction process. Know that his powerful project management skills will be working for you to achieve the best outcome.

Being a Marketing Specialist, Stephen dedicates his efforts to providing superior promotion materials including professional videos. His results are testament to his outreach and determination. In addition to being a member of the California Association of Realtors, the National Association of Realtors and the Marin Association of Realtors, Stephen is also a member of the Mill Valley Chamber of Commerce. He volunteers for Marin Villages, a local non-profit, and is a parishioner of Our Lady of Mount Carmel Catholic Church in Mill Valley.

Stephen found professional success as an Electrical Engineer in Silicon Valley where his inventions earned nine U.S. patents related to network security and high-speed network taps. Then after an around-the-world journey he started a VIDEOGRAPHY business and has presented his work in Washington D.C., Portland, Los Angeles and San Francisco. Also as an editor and graphic designer, he has produced and promoted 11 books through Rosewords Books. In his extra time, Stephen enjoys riding his classic BMW touring motorcycle around San Francisco, hiking the best trails around Mount Tamalpais, cooking homemade muesli and partner dancing.

Stephen's innovative synthesis of Marketing, Engineering and Communication is designed to deliver results. His ultimate intention is to bring satisfaction and success to our lives and our communities.

Misha has a passion for real estate and has been investing in California properties for years. She and her husband have focused on home restoration, renovation and managing their own rental properties. Misha is also proficient with financing, negotation and all aspects of transactions. She enjoys working with everyone in her community and especially with assisting her clients in fulfilling their goals. She is active in her daughter's school and church activities and volunteers with Marin Villages.

Throughout her life, Misha has pursued a number of professional avenues and has gained experience that benefits her real estate clients. For example, Misha has first hand experience in dealing with the competitive mortgage market because of her work in the mortgage industry, where she mastered the financing side of real estate.

Misha was born in Belgrade, Serbia where she helped her family run a retail business successfully for over a decade. The experience taught her the importance of customer service relations -- the importance of being patient, loyal and always willing to help your customers. She came to the U.S. to pursue her dreams and put herself through university studies. She persevered on her own without financial support and succeeded. After two decades in San Francisco and Marin County, Misha knows the area thoroughly and will be pleased to work for your dreams.