How do I do a 1031 Exchange?

[Rashad S.]

Hello. I have a home that I live in but I also collect rent from. I rent to my children. We are looking to purchase another property. We are in the Bay Area (California). I was told I could not do a 1031 Exchange unless my home is an investment property. Is that true? Is there a way I can speak with a 1031 Exchange expert to figure out how I can make it work?

[Alex Olson]

@Rashad S. Have you lived in the home 2 of the last 5 years? If so, you get the personal exemption of avoiding taxes on up to $250,000. If you have not lived in the home but still want to sell you could do a 1031 exchange out of the home and defer taxes into your next investment. What are you thinking for your next investment?