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