I am in the process of doing a 1031 exchange with an apt with some profit and depreciation. I will be exchanging it for another rental (a single family residence). I then will move into the SFR in 2 - 3 years. Thus, I will be converting a rental to a rental to a personal residence. Is what I am doing considered legal within the 2 out of 5 year rule or is it not legal and thus owe capital gains taxes and recaptured depreciation? I have read several other threads on this group. but none of the topics exactly match or they were several years old. Thanks
- posted
19 years ago