1031 exchange (w/ owner occupied unit)?

Question

Can one use a 1031 Exchange on a current single unit/family that is a long-term rental for a duplex or triplex where one unit would potentially be owner occupied? Thank you.

Holly Ferguson · Answer

Thank you, Dave for your input. I greatly appreciate it.

Dave Foster · Answer

@Holly Ferguson, You sure can.  The part that you'll be using for investment simply needs to reach your reinvestment target for the 1031.

For instance - If you're selling an investment property for $300K.  And you want to buy a duplex and live in half.  It would have to be worth $600K (if the two units were equal).  so the investment side equaled the sale of your old property.  You can use the other half any way you want.  Same thing with triplexes etc.