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Updated about 2 years ago,
Living in a 1031 Exchange building
Hello Everyone. Hope all are well and prospering. I am inside of a situation that I mindfully created and I am wondering if anyone could help shed some light from a new perspective for me. I will lay this out as quickly and simply as possible!
I performed a 1031 Exchange this year. I sold a 3-unit building and bought another 3-unit building. I moved into the first floor of my new building, which for tax purposes nullifies the 1031 exemptions.
It was a necessity for me to move into the new building. I needed somewhere safe for my daughter and I to live, and my first property was not in a good area. Therefor, I sold the first property and bought a second property in a better area. I then moved into the second property, and when I told my CPA what I had done, he told me that he would not file my taxes with the knowledge of what I had done.
I am trying to figure out a legal way to withhold on paying the capital gains from the sale of my first property. I have listened to people say that they have put A building into an LLC and then rented an apartment to themselves. *I am wondering if this is possible in my situation and whether or not it would be a legal way to live in this building while still performing a 1031 exchange*.
All ideas are welcome and truly appreciated.
And one final note; I fully plan to pay the $10K that I owe in taxes if there is no way around it. I am not trying to be a trickster or a bad person.. I honestly just don't currently have the money for these taxes.. but I will figure it out if necessary!
Thank you all.