Using proceeds from a 1031 to buy mixed use property

[Genesis Vanhoose]

So we had a piece of property that’s currently under contract to be sold. We are doing a 1031 exchange since we bought it for $70,000 and sold it for $260,000. I’m really confused about the mixed use 1031, I see a lot about people selling mixed use properties and using the 1031 but not the buying of mixed use such as a farm/ bed&breakfast using proceeds from the 1031.

I’m looking at property that’s about $900,000 that has about 60 acres, a home, a barn, a shop, etc.

I would like to buy it using the 1031 funds, and do a bed and breakfast in the house or just live in the house and convert the barn into a wedding venue, which would be an “investment property”.

Would that scenario qualify for the 1031 exchange mixed use?

[Wayne Brooks]

@Genesis Vanhoose  @Dave Foster can clarify the particulars, but….

The mixed use is no problem.

You can’t 1031 into your primary residence, but….being a mixed use, as long as the Non primary residence portion of the property has a value of greater than your $260k sale, which it seems like it would be, then you are okay. The same as 1031ing into a 4 plex where the three units you wouldn’t occupy meet the replacement property required value.