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Updated almost 7 years ago,
1031 a rental house or move to qualify for 2-5 exclusion?
When my husband and I got married, I had my own house and we decided to rent it out and move into his place. It's been a great little income producer, but we are looking to get into commercial properties rather than single family rentals. The house was also completely gutted and redone in 2014, so I want to sell while it is still in newer condition. I purchased the house in October 2014, and moved out and started renting it in July of 2016, and have been taking depreciation. If we wanted to sell in 2018, we would either need to pay capital gains on the sale or do a 1031 on the property since I moved out before a full 2 years of residency. Has anyone been in this situation and moved back into the home for a few months to qualify under the 2 -5 exclusion? Since we are planning to put the gains into a new investment property, we would probably do a 1031 but it would be nice to not be required to do it this way and save a little cost. Any input would be appreciated!