# @edwardcollins_upleveled on Instagram

- **Type:** Video
- **Original URL:** https://www.instagram.com/p/DOMq6twgUpf
- **Gondola URL:** https://gondola.cc/posts/35104063-edwardcollins-upleveled-instagram
- **Thumbnail:** https://img.gondola.cc/tr:w-,h-,fo-auto/postThumbnails/97a463f654.jpg
- **Posted:** 2025-09-04T23:00:53.000+00:00
- **Account Owner:** Edward Collins | Money Lawyer & Wealth Strategist (@edwardcollins_upleveled) — https://gondola.cc/edwardcollins_upleveled

## Caption

Most homeowners don’t realize the hidden tax trap when converting a home into a rental.

The IRS will treat it as if you took depreciation — even if you never actually claimed it.

When you convert it back into a primary residence…

that depreciation recapture gets triggered.

⚠️ And here’s the kicker:

It cannot be deferred or offset by the Section 121 capital gains exclusion.

But there is a way to navigate this.

✅ You can leverage a 1031 exchange — rolling the rental into another rental property instead.

This move can help you sidestep the trap while still positioning your wealth for growth.

💭 What do you think?

Tax professionals — I’d love to hear your insights in the comments.

Credit (IG):

Carter Cofield - cofield_advisor

Sawand Belcher - thisismetakingaction

 SF0746

## Stats

- **Views:** 6,870
- **Likes:** 209
- **Shares:** 0
- **Comments:** 9

## Credits

| Name | Username | Profile | Role |
| --- | --- | --- | --- |
| Edward Collins | Money Lawyer & Wealth Strategist | @edwardcollins_upleveled | https://gondola.cc/edwardcollins_upleveled | Talent |
| Hector Garcia | @Hector_FilmSchool | https://gondola.cc/Hector_FilmSchool | Content Producer |

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