MIss.understood asked:


Thinking of selling my rental in order to buy a primary home.

Natalie

One Response to “Would a 1031 exchange allow me to trade a rental for a primary home? If I used the proceeds as my down pmt?”

1. sassy25 on August 31st, 2010 5:57 pm

   No you still would pay capital gains on your profit

2. Spock (rhp) on September 1st, 2010 4:53 pm

   no

   a primary home is not ‘like kind’ property to investment property [which is what the rental is] and thus a 1031 exchange isn’t available.

3. Othniel on September 4th, 2010 1:23 pm

   No. You would need to sell the investment property and pay the tax on it. You can only do a 1031 exchange for another investment property.

4. acermill on September 4th, 2010 1:48 pm

   You cannot use a 1031 exchange for anything other disposing of one investment property for another ‘like kind’ investment. A primary residence is not even considered an investment. You will end up paying capital gains taxes on any profits made from your rental property.

5. Landlord on September 4th, 2010 9:49 pm

   No, the 1031 is one investment for another.