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I was given advice that if I wish to purchase another apartment, best to do a Sec. 1031 exchange with the one I own now. I might only want to live there for a few years. Can I do the Sec. 1031 exchange again to defer paying capital gains taxes in the future? If so, how or what are the conditions?

Note: We used to live in it until 5 years ago. We rented it for 5 years. It is still rented out. Now we want to sell and buy a place to live in.

mhoran_psprep
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1 Answers1

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You cannot do a Sec. 1031 exchange to buy a residence. Sec. 1031 is for like-kind exchanges, and rental exchanged into a residence is not a like-kind.

littleadv
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