1031 Exchanges
Market News & Data
General Info
Real Estate Strategies
Short-Term & Vacation Rental Discussions
presented by

Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Tax, SDIRAs & Cost Segregation
presented by

1031 Exchanges
presented by

Real Estate Classifieds
Reviews & Feedback
Updated almost 11 years ago on . Most recent reply

1031 -> primary residence?
Hi Everyone,
I have a former primary residence that I'm renting out and I can no longer qualify for the capital gains tax break if I sell it (have been renting it out for 3+ years).
My question is if I do a 1031 exchange instead for another property, SFH, and eventually end up living in that property for 2+ years (down the road), and then sell it while it's my primary residence (I know a lot of "what ifs"), how does this affect my deferred taxes? Do I still qualify for the capital gain tax break on primary residence or do I have to pay the deferred capital gains as it was originally part of a 1031? Any help, clarification, much appreciated. Thank you!