1031 On Non Primary Residence
I am selling a property that I purchased as an investment/ rental but have also lived at part time during the past couple of years. I have not claimed it as my primary residence. I intend to purchase another similar property and do a 1031 exchange but a friend mentioned that you can not do a 1031 exhange on a property that you have lived in regardless if what you are selling was an investment property.
Any one else heard of this limitation on doing a 1031?
Thanks
You said you never actually declared this property as your primary residence, right? If that is the case then I am assuming you had a house that you declared as your primary residence. If you have another house that you have been calling your primary residence, you should be all set. However, I am not an expert in 1031 exchanges.
Best of luck,
Matt
If you lived in the property for 2 of the last 5 years, you do not have to pay captial gains on the sale. However, if you didn't live there for at least 2 of the last 5 years, then a 1031 Exchange is a must in order to avoid capital gains tax. Find yourself an accommodator to ask questions of, look online for 1031 Exchange. Your friend isn't giving you good information.
You can quickly reach and talk to a pro 1031 expert, by looking up RE Exchange Services in phone book, or online.
They'll be glad to answer your questions about 1031 procedure, as it's all they do normally.
Starker Exchange Services is the original one, the co. founded by the guy who beat the IRS and really founded the whole business, and they're all over the USA. But many, many others, and there's bound to be one or two quite close to you.