Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
1031 Exchanges
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 3 years ago on . Most recent reply presented by

User Stats

1
Posts
1
Votes
John Burns
1
Votes |
1
Posts

Personal use of property prior to 1031 exchange

John Burns
Posted

Suppose I own a single-family rental property and the long-term (8 year) tenant vacates.  I want to move into the property to complete extensive repairs/maintenance in anticipation of a sale.  The intent would be to defer capital gains by doing a 1031 exchange.  Would moving into the house (likely six months to do the work) jeopardize eligibility to do a 1031 exchange?    

Thus far, guidance I've found is limited.  Publication 527 speaks to dividing expenses between personal and rental use.  Days in the house substantially spent on repair and maintenance can be excluded as days of personal use in that calculation.  Publication 527 also speaks to whether a dwelling unit is used as a home when determining if net losses are deductible.  Those days of personal use that follow a rental period of 12 or more consecutive months can be excluded from that determination.  However, I don't know if these rules have any bearing on eligibility to do a1031 exchange.

Any help is greatly appreciated! 

Most Popular Reply

User Stats

12
Posts
3
Votes
Wes L.
  • Investor
  • Texas
3
Votes |
12
Posts
Wes L.
  • Investor
  • Texas
Replied

Would a 1031 be needed to defer cap gains since you've owned the property for 8 years?  Rookie. 

Loading replies...