Do I qualify for 1031 exchange?

[Wilson Vanhook]

I have sort of a unique situation on hand and want to know if I am eligible to avoid capital gains on a property I am selling.

I purchased the home as a primary residence in February of 2020. I moved into the home immediately and occupied the home until the end of September 2021. At that point I moved into a new house, kept the property, and in October 2021 a tenant moved into the home. I am now under contract to sell the house with the tenant in place and am purchasing a new investment property. Am I eligible to avoid capital gains on this property in any way? I did report the 3 months of rental income from 2021 on my taxes.

[Dave Foster]

@Wilson Vanhook, There's no statutory holding period.  But the standard is your intent.  Did you intend to hold this property for productive investment use?  Or did you primarily mean to resell it?  There's some box checks that look good for you - like you reported rent.  That rent crosses two tax years.  You've owned it for more than a year.  But you haven't used it for investment for a full year.  It's pretty transparent for a transaction as long as you feel you could demonstrate your intent to hold for productive use.