1031 Holding Period
I am searching how long you have to hold a property that you acquire using section 1031 exchange before you convert it to personal residence? I have been told anywhere from 6 months to 18 months, but just want to make sure.
The service has never spelled out how long you should hold title to either the relinquished or replacement property. The requirement is that the exchangor (taxpayor) have the INTENT to hold both properties for investment, income production or use in a business. The burden of proof lies with you, so the longer you wait before you convert to personal use the safer you are. Personally, I would never convert during the first 12 months.
[addsig]
I found a date calculator on a 1031 Exchange website. I don't know anything about the company, but thought I would share this link to the calculator they provide:
http://www.ipx1031.com/edcalc.cgi
Good Luck!