1031 into a multi-family that I use as a primary residence and buy with a VA loan

[Kevin Meyer]

Hello, I have a question, probably best answered by a lender. My question is: Is it possible to 1031 Exchange a multi-family rental property into a new multi-family property that I also use 1-unit as a primary residence & buy that like-kind exchanged property with a VA loan?

[Daniel Osman]

@Kevin Meyer If you're planning on renting out the other units and living in one of the units, you can apply split treatment to the transaction. This means that the portion of the property used for rental purposes can qualify for the 1031 exchange, while the portion used as your primary residence does not. Revenue Procedure 2005-14 provides guidance on how to handle such transactions, allowing you to exclude gain under Section 121 for the primary residence portion and defer gain under Section 1031 for the investment portion.

In terms of the VA loan you'll have to talk to your lender about what's possible.