1031 exchange:
Dual Use of Property
1031 Exchange customers often use their real estate for both investment and as principal residence.
Examples of this are:
1) The conversion of a principal residence to an investment use, or vice versa;
2) The existence of a separate dwelling unit on a property used as a principal residence (duplex or mother-in-law apartment);
3) The use of part of the residence for an in home business (daycare or other home based business);
4) The dual use of a property as both residence and business (farms and ranches).
In order to achieve maximum tax savings, both IRC code sections 1031 and 121 can apply to the sale of such a property. In each of the above examples, the application of the tax law varies. Please contact us for assistance when faced with the sale of a dual use property�we can help you maximize your savings!
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