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Updated over 3 years ago on . Most recent reply
Establishing percentage of 1031 exchange in multi family property
We are exchanging into a multi family property that has a main house with a small cottage in the back. We plan to occupy the cottage and have a value calculated off of the appraisal comps. Can I use that value as a percentage of of the total sale to establish the owner occupied and investment portions so that none of our 1031 funds go to the owner occupied part of the property? Thank you ahead of time. I have looked but couldn't find this particular answer.
Most Popular Reply
Chris thank you for the real world example. I'm gathering that as long as you have a "method" that can be backed up by supporting documentation your good. Although an audit would be the ultimate test of that theory. I cannot find any direction in the code so it seems to be a grey area. Again thanks for the help.