Your questions about 1031 exchange

Paul asks…If I buy an investment property through 1031 exchange, what happens if I move in to the unit?I bought a rental property lthrough 1031 exchange last year in another town, but now want to move there to live. What are the tax implications? Will I have to pay the deferred capital gains taxes?admin answers:No tax due when you move in. But you will not get the 250,000/500,000 capital gain exemption when you sell it unless you live there for 5 years. This is longer than the normal 2 year rule for getting a home sale exemption from

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