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Can an Owner do a 2 yr Lease w/Option to buy to qualify for 1031?
I'm thinking about renting out a property I currently live in - possibly with Lease option to buy in 2 years. Does that work for 1031: and what are the pros & cons? The minimum lease period is 2 years and then have to sell within that year after to keep the personal deduction - correct me if I have it wrong. Thanks!
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Also if you are leasing out your primary residence you don't need a 1031 exchange if you have lived in it over 2 years. You can lease it for up to 3 years or less and get a free 250k deduction if you are single and 500k if you are married. If you have lived it in under 2 years it is likely you don't have a huge gain, or have you?
- Wendy Patton
