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1031 Exchanges
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Updated almost 3 years ago,

User Stats

13
Posts
4
Votes
Kareena Sharma
  • Riverside, CA
4
Votes |
13
Posts

1031 exchange converted to primary

Kareena Sharma
  • Riverside, CA
Posted

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?

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