1031 exchange qualifying
I am interested in doing a 1031 exchange but I do not know if the property I am interested in can qualify.
I am interested in a small (25-space)mobile home park that also has a brick home on the property that the owner used as his principle residence. I feel that in order to qualify for a loan I will have to owner/occupy the brick home. Will a 1031 exchange be possible?
Lynnie G.
Sorry Lynnie G. The 1031 rules do not allow your personal residence to be used as the replacement property.
Your transaction will have to be divided into two parts -- the purchase of the MH park and the purchase of the house as your primary residence. The portion of the purchase that is the (25-space) MH park is eligible to participate in a 1031 exchange.