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1031 C-Store to Air BnB
Hello!
I have a convenience store for sale. I run an Air BnB out of my primary residence renting out 4/5 rooms. Therefore my primary residence is being used for a commercial venture. Would it be possible to use a 1031 exchange to use the proceeds from the store to pay off the mortgage on the primary residence?
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Bill Exeter
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Bill Exeter
#2 1031 Exchanges Contributor
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#2 1031 Exchanges Contributor
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Hi @Karen Chenaille,
Unfortunately, no. The payoff of a mortgage or debt is not considered to be a purchase of real estate and will therefore not qualify for tax-deferred exchange treatment. You would have to actually acquire an interest in real estate that you do not already own.
- Bill Exeter
Exeter 1031 Exchange Services, LLC and Exeter Trust Company
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