1031 Exchanges
Market News & Data
General Info
Real Estate Strategies
Short-Term & Vacation Rental Discussions
presented by
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Tax, SDIRAs & Cost Segregation
presented by
1031 Exchanges
presented by
Real Estate Classifieds
Reviews & Feedback
Updated almost 3 years ago,
1031 exchange converted to primary
Hi,
This question is for a friend's mom. She completed 1031 exchange and converted 1031 property into primary residence, almost immediately after 1031 (one month). I know the rules that she should have used the property as rental for 2 years and then moved in. However, she moved in for some reasons. property was purchased in Dec 2021 and moved in Jan 2022.
Question: would this invalidate the 1031 exchange ? If yes, would she require to pay capital gains in 2021 or 2022?