Is it possible to sell rental using 1031 exchange and buy new property for personal residence ,I had lived in previous property for 2 years and then rented it out for last 10 yrs.
The closest you could come is buying a duplex that costs twice as much as your 1031 sale property. (Or a triplex that costs 50% more or a quadplex that costs 33% more.)Then you could use the exchange as a downpayment. Use more than you sold as your new rental and live in one unit as your new primary.
Is it possible to sell rental using 1031 exchange and buy new property for personal residence ,I had lived in previous property for 2 years and then rented it out for last 10 yrs.
No. Your replacement property needs to be held for investment or associated with your trade or business. You cannot exchange into your primary residence as it is not considered "like kind." Some exchanger's exchange into a property, rent it out for several years, and then, AFTER CONSULTING with their tax advisor, convert that into their primary residence.
The closest you could come is buying a duplex that costs twice as much as your 1031 sale property. (Or a triplex that costs 50% more or a quadplex that costs 33% more.)Then you could use the exchange as a downpayment. Use more than you sold as your new rental and live in one unit as your new primary.