1031 exchange requirement

[Sebastian Madariaga]

Hello BP community!!

I’ve been reading into the 1031 exchange and was curious about a requirement someone was trying to explain to me.

I was told if you complete a 1031 exchange you must rent out the property for xx amount of years, then live it in as a primary residence for xx of years ?

After reading up on it, I can’t seem to find this requirement anywhere. Was wondering if anyone has completed one or have heard this being a thing ?

Look forward to the responses, Thanks in advance!

Sebastian Madariaga

[Rob Pecha]

@Sebastian Madariaga my understanding is the general rule of thumb is you must rent it out for a minimum of two years to qualify for the exchange. Anything inside of that the IRS can contest as a non-valid 1031 transaction and come after you for the tax due. Hope this helps!