Can You 1031 When You Are Sole Prop & Owner Occ?

I'm wondering if you are a sole proprietor rehabbing for a profit and also occupying the residence, if you would be able to 1031 when you sell.

I think the answer is most likely no. If it was possible I would only think it possible in a duplex situation where there is a clear division of residence and rental.

Comments(1)

  • myfrogger16th November, 2004

    Owner occupied properties are not eligible for a 1031.

    They are elgible for a 121 exclusion which means that you and your spouce each can take $250,000 of the gain tax free as long as you live in the property for 2 out of the last 5 years.

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