1031 exchange ?? Selling primary residence

[Robert G.]

Hi all,

I am currently listing my home for sale (lived in it for 18 months) with my realtor and plan to net approximately 61K after closing costs etc. I want to take a portion (or all of it), and put 20% down on a new property to live in (and avoid PMI insurance).

My question is, how do I avoid paying capital gains tax on what I net? Is 1031 exchange a plausible option? The house that I will be putting 20% down on is a 4bed/3bath in which I will rent out 3 of the rooms (I am a young bachelor).

As always, any help is greatly appreciated!!

[Gautam Venkatesan]

Can you wait 6 more months to sell your house?

If you have lived in your primary residence for 2 years, up to $250K net profit will be tax free.