Can you move into a property after a 1031 exchange?
How long until you can move into a 1031 exchange property?
Astute real estate investors have also known that they can roll out of an investment property thru a 1031 Exchange and replace with a qualifying residential real estate investment property They then rent it out for a year or so (exchange professionals recommend at least one year) before moving into it.
Can I change investment property to primary residence?
You can convert an investment property into your primary home whenever you want, though. If you decide to sell a rental or vacation home for more than you paid, the Internal Revenue Service will charge you a capital gains tax on the profit.
What happens if I move into my investment property?
Any remaining gains are taxed at the lower long-term capital gains rate. Moving back into your rental to claim the primary residence gain exclusion does not allow you to exclude your depreciation recapture, so you might still owe a hefty tax bill after moving back, depending on how much depreciation was deducted.Dec 23, 2020
How long do I have to live in my investment property?
If you like your rental property enough to live in it, you could convert it to a primary residence to avoid capital gains tax. There are some rules, however, that the IRS enforces. You have to own the home for at least five years. And you have to live in it for at least two out of five years before you sell it.Nov 11, 2021