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Updated 6 months ago on . Most recent reply
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Can I 1031 Exchange a rental for a primary with an ADU?
Hey, question for anyone familiar with 1031 exchanges. I have a rental property I've held since 2019 that I'm considering selling. Would I be able to do a 1031 if I'm buying a primary property with an ADU that I would use as a short term rental? I read somewhere I could 1031 the portion of the property that I'm renting (ADU), and pay capital gains tax as normal on the portion I'm living in? Is something like this possible? Let me know if you need more info. Thanks!
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@Nick Sansivero, Spot on by @Bill B.. You're talking about a mixed use property. Your accountant will make the allocations. But only the portion of the purchase allocated to investment (the adu) can be used to satisfy your 1031.
- Dave Foster
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