Avoiding a 1031 exchange
I bought a townhome with a VA loan in August 2014 and our renters took over in June 2016. We are considering selling this summer, and I am wondering if we can leave the unit empty for two months so we can take credit for living there for 2 years and avoid capital gains taxes. We would not be living there during these two months. Is this legal?
It would cost us about $6k, but that seems worth it to gain flexibility in not having to go through the 1031 constraints. Our equity is about $200k, so we definitely want to avoid a tax bill.