1031 exchange when I lived in my rental property

I bought a rental condo in 2013. I lived in one bedroom and rented out the remaining bedrooms. I then got married in 2015 and lived in it as my primary residence.
If I sell now, does the time between 2013 and 2015 count as the "2 of 5 year primary residence" requirements for 1031 exchange?
What kind of proof does the IRS need to know it was your primary residence?
Reply to
Faraz H
Section 1031 has nothing to do with this. A 1031 exchange is for certain exchanges of like-kind property, but it does not apply to your principal residence. Since it is now your principal residence, and apparently is not being rented out now, section 1031 will not apply.
Rather, you seem to be asking about a section 121 exclusion of gain from sale of principal residence (up to $250,000, double that for a married couple). Even if you rented part of it out, if you actually lived there and it was your principal residence during 2013 through 2015, by the terms of the statute it should apply.
However any depreciation that might have been allowable (whether or not you deducted it on your taxes) will have to be recaptured, meaning you will be taxed on that when you sell.
Reply to
Stuart Bronstein
I bought a rental condo in 2013. I lived in one bedroom and rented out the remaining bedrooms. I then got married in 2015 and lived in it as my primary residence.
If I sell now, does the time between 2013 and 2015 count as the "2 of 5 year primary residence" requirements for 1031 exchange?
What kind of proof does the IRS need to know it was your primary residence? ======== As your last use of the property was SOLELY as a residence, it's not eligible for a 1031 exchange.
Also, your question regarding "2 of 5 years" is for SELLING the property, not exchanging it.
Reply to
D. Stussy
On Mon, 28 Mar 2016 07:02:19 EDT, "D. Stussy" wrote in
Just curious: does the "2 of 5" years mean 2 continuous years or 2 years aggregated?
Reply to
VinnyB
On Mon, 28 Mar 2016 07:02:19 EDT, "D. Stussy" wrote in
Just curious: does the "2 of 5" years mean 2 continuous years or 2 years aggregated?
=======It means nothing because there is no such rule for an exchange.
Reply to
D. Stussy
Assuming you mean to qualify for the exemption on the sale of a primary residence and not a 1031 exchange, no the time does not need to be continuous, as long as it adds up to the correct number of days (730) during a five year period.
Reply to
Stuart Bronstein
On Mon, 28 Mar 2016 21:36:11 EDT, "D. Stussy" wrote in
As I thought was clear from the extracted fragment I was quoting, I was referring to SELLING. But never mind, Mr. Bronstein understood the question and provided an informative answer.
Reply to
VinnyB

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