Thanks for the tip Dobey!



So-called “tin-can tourists” came down yearly with their trailers to escape

the Northern cold. A group of regular visitors bought the property in

1958, and it became a town in 1963. It is run as a corporation by a board

of directors, and residents own shares based on the size and location of

their lots.



“This is pretty much it for an affordable community along the coast,” said

Debbi Murray of the Historical Society of Palm Beach County. "It’s just

another piece of Floridiana that is going to disappear."



Briny Breezes’ board recently approved the sale for $510 million. The

owners of the 488 trailers have until Jan. 10 to ratify or reject the deal. A

two-thirds majority is needed to sell. The amount each person would get

depends on how many shares the resident owns. Each share is worth

roughly $32,000 under the developer’s offer. Owners would not get any

money – and wouldn’t have to move out – until 2009.



Kevin Dwyer, 47, is all for the deal. Dwyer, who paid just $37,500 for his

trailer nine years ago, would make about $800,000.

Kevin Dwyer, 47, is all for the deal. Dwyer, who paid just $37,500 for his trailer nine years ago, would make about $800,000.

Pre-tax

TO EXCLUDE GAIN ON THE DISPOSITION OF A HOME from income under IRC section 121, a taxpayer must own and occupy the property as a principal residence for two of the five years immediately before the sale. However, the ownership and occupancy need not be concurrent. The law permits a maximum gain exclusion of $250,000 ($500,000 for certain married taxpayers).

If he qualifies it as it primary residence and he's married, the bulk of that gain goes tax-free...yippee!!!

[quote=Indyone]

TO EXCLUDE GAIN ON THE DISPOSITION OF A HOME from income under IRC section 121, a taxpayer must own and occupy the property as a principal residence for two of the five years immediately before the sale. However, the ownership and occupancy need not be concurrent. The law permits a maximum gain exclusion of $250,000 ($500,000 for certain married taxpayers).

If he qualifies it as it primary residence and he's married, the bulk of that gain goes tax-free...yippee!!!

[/quote]

I know those rules. But if you didn't want to sell in the first place and have to buy a new home at inflated prices elswhere and get to pay cap gains it isn't such a great deal.  Not to mention the new property taxes and insurance.

Hope they all qualify

actually they can do a 1031 exchange and pay no taxes

[quote=whitewlfz]actually they can do a 1031 exchange and pay no taxes[/quote]

Can you do a 1031 with property that was your personal residence?  I thought that was only allowed for investment property or business use property…

[quote=whitewlfz]actually they can do a 1031 exchange and pay no taxes[/quote]

No they can't. Not on their own personal residence.  If it was commercial/rental/income property then they can.  I didn't get the sense that was the case.