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Updated almost 7 years ago on . Most recent reply
1031 tax exchanging rental property into a primary residence
Good morning! I am new to the forum and wanted to know if anyone knows if it is possible to do a 1031 exchange into a primary residence? I am going to be selling off a few of my buy and holds and buying a new home so I figured I’d ask because I couldn’t find any concrete answers. Thank you!
Most Popular Reply
Yes, BUT. It has to be a "like kind" exchange, rental for rental. I think you have to rent the new property out for two years. Then to claim it as a primary residence for avoiding taxes live in it for three years. We did this in 2001 with a California property into a Texas retirement community we liked. It worked great for us because we had a gain of over$250k on the California property.
There are a couple of 1031 facilitators or here that can give you more details.