1031 exchange question - Can I stay in it while renovating?

[Katrina Cabral]

I think that the rule with a 1031 exchange is that you can not live in the property for the first 18 months. However, I'm buying a property that needs major renovations. I've been told that I can stay in it while renovating it. But that I will need to keep good documentation to support this claim if ever the IRS should ask for proof. Anyone know if this is correct or just wishful thinking? 

[Dave Foster]

@Katrina Cabral, Rev Proc 2008 -16 specifically excludes days you are staying in the property while working on it from counting against you.  So yes document your processes.  But I don't think you have to worry about your bed - unless you're not making it every day!