1031 Exchange on Multi-Family
Hello from Chicago! How does the 1031 exchange apply to a multi-family unit in the case where 1 unit is rented and the other is a primary residence? I'm reading Garret Sutton's Loopholes book and it doesn't offer suggestions for this circumstance.
I understand that it needs to be an investment property for 2 years and if I want to also utilize the primary residence tax benefit, then I need to hold it for a total of 5. So could I move forward with a 1031 exchange + primary residence tax benefits if for the full 5 years, the second floor is rented out and I only live in the first floor unit for 3 years, then lease it to tenants for the other 2 tail-end years?
Thanks ahead for lending your time and thoughts!
xoxox Lugo