Need tips on converting rental property to primary residence
Hi All,
Need some tips on how to convert rental property to a primary residence.
My friend has two properties: 1 for rental and 1 for primarily resident. his rental has been in a rental for 5 years already and it's value appreciated a lot as well, now that he placed a contingent offer to a new property which he wishes to purchase with the proceeds from the sales of the rental property. His intention is to rent out his current primary residence and move into the new property as soon as the escrow close, and to avoid paying huge tax on the gain, he was hoping to do 1031 exchange but seems like the IRS requires you to rent out the new property for 24 months before the owner can move in after 1031 exchange. So in this case, any idea/suggestion/comments for my friend to avoid paying too much tax and move into the new property? any suggestion will be greatly appreciated???