Multi-Family
I understand you can move into a rental property for two tears and avoid capital gains taxes. Does this also apply to a multi-family property. If I moved into the property and used it as a single family home for 2 years, could i avoid the tax?
You can move into a rental property and convert it to your primary residence, and as long as you live in it as your primary residence for at least 24 months out of the last 60 months just prior to the sale you can exclude up to $250K in capital gain taxes if you are single and up to $500K if you are married. It would only apply to those potions that are your primary residence and not those that are rental property. For example, if you own a four-plex and move into one of the four units, approximately 25% would be your primary residence and subject to the 121 exclusion and 75% would be treated as rental and subject to a 1031 exchange.
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