@BlaBla22 wrote:
I am planning to live in the new townhome for sometime like 6 months to a year. Any issues with this? Does it disqualify me from taking tax deferment via 1031?
You need to discuss all aspects of your exchange with a qualified intermediary/exchange facilitator and you could very well jeopardize your deferment by using the property as a personal residence immediately after the exchange.
There is a safe harbor outlined in Rev. Proc. 2008-16.
See https://www.irs.gov/pub/irs-drop/rp-08-16.pdf
