1031 for owner occupied?

[Ralph Palma]

Hi, I think this is more a tax question, looking for best outcome in this particular deal:

buying a property that need repair, will live there but will put it for sell as soon as the renovation is completed.

1_Should I purchase as Investor or owner occupied?

2_Do I need to do a 1031 for owner occupied?

3_New investor so this year 1 purchase (buy, renov, sell) will the profit be treated as Ordinary Income or Captial Gains?

    especially if I'm owner occupied.

4_Eventually I will buy & hold/rent, but not in this case

thanks Ralph

[Dave Foster]

@Ralph Palma, 1031 isn't allowed for primary residences.  And there will be no difference in the taxation on the sale whether you buy as primary or investment until you get to the two year residency mark that @Bill B. referred to.  And since you're actually living in it the normal tax benefits of writing off expenses etc will not be allowed until you sell.  So no difference on taxation.  But like the other guys said, you'll probably get into the house cheaper from a loan perspective.