Moving in to a 1031 exchange

[Eric Davenport]

We bought an STR using a 1031 but spent the first 6 months rehabbing before renting. We'd like to move in and understand to defer taxes must wait w years. Does this timeliness start from when it was rented and after rehabbing, or when the house was bought?

Thank you!

[Melanie P.]

It starts from when the house was purchased. You must also rent it at fair market rent for at least 14 days and not use it for personal purposes more than 10% of the time rented during the safe harbor period. Here is the rule:

https://www.irs.gov/pub/irs-drop/rp-08-16.pdf