Subject: 1031 Exchange
Date: Thu, 15 Apr 2004
We made a 1031 exchange about 6 months ago. The property that we received was a more expensive one, because we believed it would be easier to rent. After six months, we still havenít been able to rent it. We discovered the house is located in a depressed area.
Our tax accountant says we could move into the rental property since we purchased it with the intention of renting it.
Could we move into the rental without having tax consequences?
Date: Fri, 30 Apr 2004
I think you have a legal basis for doing so. This situation is one that is likely to get IRS attention. Do you want to live in "a depressed area"? Can you exchange from this property to another one? Maybe you should sell the property on an installment sale basis?
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