1031 Exchange and Capital Gains

1031x.com is a fully qualified 1031 exchange intermediary. We have helped thousands of clients with their exchanges across the U.S. for the past 11 years. Our 1031 Exchange Blog is dedicated to bringing you the latest news about 1031 exchanges, capital gains taxes, TIC investment properties and estate planning. Please feel free to contact us at 888-899-1031 or infox@1031x.com for a free consultation! RSS feed for Yahoo/AOL/MSN personal page is http://www.1031x.com/exchange.xml

My Photo
Name:Steven Hickox
Location:Denver, Colorado, United States

Thursday, May 04, 2006

1031 exchange into personal residence

Mr. Hickox,
Is it possible to sell a rental, and exchange with your primary residence (make it a rental), and move into a new residence. There are no lenders involved and the ownership for rental is wife only but present residence is wife/husband. I would think you would need to sell your present residence to WHO??and buy it back as a replacement property. Thanks
 
Dear P:  The simple answer is no you cannot sell your rental and buy your principal residence (from yourself) even if you immediately convert the residence to a rental.  Any hoops that you jump through as far as selling the residence to a third part and then buying it back would be ill advised.  Please consider selling the rental and finding another suitable replacement property for your 1031x.  Sincerely,

Steve Hickox
Attorney / President