Does a rental have to be occupied for a 1031 exchange

[Jack B.]

I lived in the house bought as a primary residence for 1.5 years. Rented it out for 4 or so years after. Moved back in for 2 years with the intent to rent it back out after I moved back out again (moved back in after I sold my other house I was living in). It's been listed for 2 months and all I get are around 500 credit score applicants now. Wasn't like that before. Never had any vacancies even in winter.

So I'm wondering if it just being listed as a rental the last two months combined with it being a rental previously qualifies it as a rental for 1031 exchange or not.

[Arlan Potter]

Qualifies until you get audited.

You really need to talk to your tax advisor Has it stayed on your schedule E for the entire time?

Is there going to be an actual gain on the sale. If you have been living in it for 2years or more it should not be taxable when sold, unless you have been deducting depreciation. See your tax man.