Question about 1031 tax exchange

[Eddie Mendoza]

Hi everyone , just had a question about 1031 exchange , if we lived in our primary home for 4 years and then refinanced less than a year ago, do I now have to wait a full year before selling in order to do it ? Not sure if those 4 years before that counts at all, thank you.

[Bill Exeter]

Hi @Eddie Mendoza, 

A primary residence does not qualify for 1031 Exchange treatment, only properties held for rental, investment or business use qualify for 1031 Exchange.  The sale of a primary residence falls under Section 121 of the Internal Revenue Code (121 Exclusion).  You can exclude up to $250,000 (if single) or $500,000 (if married) in taxable gain as long as you have owned and lived in your primary residence for at least 2 out of the last 5 years.