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Updated over 3 years ago,
1031 exchange to buy future primary home
I have sf rentals that have done quite well. I live out of state in a home that is larger than my wife and I need. We like the area and don't plan to move were the rentals are located. As I mentioned they exceeded my expectations and there will be considerable regular capital gains along with the recapture of the depreciation %25 tax. My question is if I have found a home near me that is a better fit for retirement could I do a 1031 exchange with one of my rentals and buy this other home and continue renting out it for a year or 2. Then sell my larger primary home and move into the rental and make that my new primary home. My thought pattern is that I would not have to pay any capital gains using the 1031. I hope this post makes sense and someone has the answer!