The 1031 rules will apply from the date of ownership and your residency.

Although this is not the first flip where I have to deal with this, I find that dealing with this rule keeps on changing.

-Steven the Tax GuyYour guide to IRS laws, rules and regulations.

-Steven the Tax GuyYour guide to IRS laws, rules and regulations.

-Steven the Tax GuyYour guide to IRS laws, rules and regulations.

graet point Al Williamson...as a personal rule, i have stayed away from buildings where one tenant is on top of another..for one thing, the noise as al said..another is plumbing leaks from one apartment down into the other..if a tenant keeps their shower curtain open, it will eventually leak down into an apartment below...if it leaks into their kitchen below,they see the damage and hopefully stop...if it affects another tenant, they may not realize or it care to change their bad habits

In particular, I'd like to convert the walk-in attic or the basement into a fourth bedroom.

http://www.chicagotribune.com/classified/realestate/foreclosure/sc-cons-0913-strategic-default-20120913,0,4134066.storyI think it is particularly interesting how they indicate that they will pursue you for "abusing" the system, not because you broke the rules or the law.

Are there ANY exceptions to the rule that one can't use the exclusion twice within two years?

Also make sure they care Workers Compensation Insurance, there are numerous court cases have ruled the hiring party is responsible for injuries to independent contractor’s employees when the independent contractor did not have their own WC insurance.