1031 exchange can I rent ou a couple of rooms

[Tommy Sowell]

Can I rent out a couple of room of my house and do 1031exchange after 3 years

[David M.]

@Tommy Sowell

I believe you can, but why?  Have you well maxed out your sec121 exclusion of $500k if married?  That covers a good deal of appreciation.  Also, your defererd liability would be pro-rated by time as well.

Also, generally just the square footage of the rooms (no common areas) count as being put into service.  So, you generally get a lesser fraction of your property considered a rental --- lesser pro rata share..  Which also means your depreciation is very little --- so not much to 1031.

Also, do you have the means to live somewhere else (or perhaps a mutlifamily) when you do this 1031 exchange?  you would have to exchange into another investment property.

Yes basically, yes, but not sure what you are gaining from it -- but that could just be me.  Hopes this help.  Good luck.