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34
Posts
7
Votes
John Pauler
  • Investor
  • Somerville, MA
7
Votes |
34
Posts

Tricky 1031 exchange w/ condo conversion

John Pauler
  • Investor
  • Somerville, MA
Posted Jul 19 2016, 13:52

Here's a 1031 challenge I am currently going through now...

In March 2014, I purchased a small two family owner occ with a tenant renting the other unit.   

In August 2014, I moved out and have been using it as an investment property ever since. 

Now both of my tenants are interested in purchasing their units, so I am thinking it is a good time to turn it into condos (was physically condo-ready when I bought it, so it is just legal/paperwork), create some value, and re-invest in a larger property. 

I would like to use the 1031 exchange (this would be my first time doing so, total novice here) to avoid paying capital gains and depreciation recapture, but I cannot figure out if this would apply to my situation since I am technically selling the property as two separate transactions. 

Does anyone have experience doing something similar? 

Any advice? 

Thanks! 

John

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