[FL] If we are not legally married and add each other on our properties' deeds, would it be considered taxable income?
If she sells her condo and does not buy another property, will she lose survivor benefits from the military if she has more than $150K?
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When you add each other to the deed, you wouldn't usually pay taxes on the transfer, as it's considered a gift.
However, income from the rental you receive would need to be reported and taxed as income.
If your fiancée sells her rental property and you buy a new rental property, you may be eligible to do a 1031 exchange, which can defer capital gains.
If she doesn't buy another property, then capital gains taxes will apply on the profit.
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If we are not legally married and put each other on the deeds to our properties, would it be considered income and would we have to pay taxes?
If my fiancée sells her condo and buys a new property with me, would she have to pay capital gains? And if she didn’t buy a new property, would she be subject again to capital gains?
If she sells her condo and does not buy another property, will she lose survivor benefits from the military if she has more than $150K?
Welcome back. I apologize as I can't see past questions, so I do want to clarify a few things. Would the properties be rental properties?
My property is not a rental, my fiancée's property is.
When you add each other to the deed, you wouldn't usually pay taxes on the transfer, as it's considered a gift.
However, income from the rental you receive would need to be reported and taxed as income.
If your fiancée sells her rental property and you buy a new rental property, you may be eligible to do a 1031 exchange, which can defer capital gains.
If she doesn't buy another property, then capital gains taxes will apply on the profit.
Regarding military survivor benefits, does she have an asset limit?
$150K.
Apologies. In that case, if she has more than the $150,000 asset limit, it can disqualify her from survivor benefits.
What is a 1031 exchange and does it apply in Florida?
A 1031 exchange is a federal tax-deferral strategy that allows someone to defer capital gains taxes when selling a property and reinvesting the proceeds into a similar income-producing property.
Yes, it does apply in Florida—it's a federal rule, not state-specific.
That’s good to know. If my fiancée buys another property in the same year and lowers her asset level, will she be able to keep her military survivor benefits?
Yes, if she buys another property within the same year and her assets drop below $150,000, she should be able to maintain her military survivor benefits.
However, it’s best to complete the transaction as soon as possible to avoid interruption in benefits.
Thank you so much. How and when do I initiate a 1031 exchange?
To initiate a 1031 exchange:
- Before selling the original property, engage a Qualified Intermediary (QI)—this is required.
- You have 45 days from the sale to identify replacement properties.
- You must complete the purchase of the new property within 180 days of the sale.
- Both the sold and purchased properties must be for investment or business use (not a personal residence).
Does a productive use include using the money from a property sale to buy another property to reside in?
No, it cannot be for a personal residence. The replacement property must be an income-producing or investment property to qualify under the 1031 exchange rules.
I see, thank you.
