Duplex 1031 exchange

[Misook Foley]

I want to sell  a duplex. Can I do 1031 exchange to two single homes rather than a  duplex or more unit building?

Thank you

[Whitney Nash]

Hello @Misook Foley

As the others have stated, yes, you can 1031 between different property types, such as multi unit to SFH, to bare land, to commercial, etc., etc. They are all like-kind to each other and qualify. The other aspect that matters, though, is how the properties are used. They must also be held for investment or use in a trade or business. Were both sides of the duplex rented out? If you lived in one side personally, (even within 2 of the last 5 years) then only the numbers related to the rented portion qualify for the exchange. (The other side should fall under section 121.) Do you plan to rent out both SFHs? If one will be personal use, then it doesn't qualify either.