1031 Exchange into Duplex to Owner Occupy.
I am attempting to house hack and move into a duplex to reduce our out of pocket per month. Should go from 1100-500. So I have a duplex I am actively selling. I have owned it for about 15yrs. Equity is about 60k. Would like to use if for money down. Capital Gain will be about 35k. Buy was 180k sell for 215ish. Depreciation of course is significant. So I would like to 1031 exchange it. I am considering 1031 exchanging it into another duplex, possibly SF (duplex prefered for out of pocket). I would then like to live in this new duplex next summer. After some research, sounds like you can utilize 1031 along with code 121, but the following was stated: Need to have it as a rental for 2 years first, then can live in and covert to the 121 code. Then the proportion of your differed taxes/depreciation payback is based on the ratio of years you live there compared to the 2 year requirement (as income property). Would this be different for a duplex (only living in one side) Partial savings? Any insights or suggestions?
Thanks