Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 6 years ago on . Most recent reply

User Stats

25
Posts
7
Votes
JP Krueger
  • Real Estate Investor
  • Beverly, MA
7
Votes |
25
Posts

Question: 1031 exchange

JP Krueger
  • Real Estate Investor
  • Beverly, MA
Posted

Can you like-kind exchange a 3 family the owner is living in to a 2 family that the owner will live in?

Most Popular Reply

User Stats

294
Posts
191
Votes
Glenna Wood
  • So MD
191
Votes |
294
Posts
Glenna Wood
  • So MD
Replied

Yes, you can exchange those property types but the kicker is you live in it. A 1031 exchange is intended to carry capital gains forward on investment property and the $250/$500k primary home sale exclusion is for your residence (one unit in your case).  Your situation mixes the two. A 1031 may be possible but applying the rules is much more complicated regarding your rental vs residence basis, past use of each unit, etc. As an investor who has used simple 1031's for rental property exchanges, I wouldn't proceed without a thorough professional review and you will need a pretty specific profile of property you want to exchange into in order to plan out the whole transaction soup to nuts. You don't want to ding up that primary residence exclusion. IMHO as a small investor, it's the best tax break we have.

Loading replies...