Hi everyone, thank you all in advance for your help with this! I’ve got a bit of a weird tax question. I currently have an investment property that I’ll be trying to sell soon. All of the value would be considered long term capital gains and so I was trying to see if I could instead 1031 exchange the proceeds into an investment property which I’ll eventually move into and sell with the primary residence deduction.
My questions about this strategy is how long would the property need be classified as an investment property? Could I live in the place during this time if it’s rented to someone in the family and they allow me to live there? I believe I’d need to live there for at least 2 years and hold the property for 5 years but would like a confirmation if possible?
Thank you again for your assistance!!
