Can we take our rental property, exchange into a someone else's primary residence property, then rent it and qualify for a 1031 exchange?

[Critter-3]

If you buy a new property to use as a rental then you can sell the old one and use the 1031 exchange for it.   What the property was used for before you bought it is immaterial. 

[Carl]

Keep in mind also that a 1031 exchange "must" be handled by a 3rd party. Once you acquire a qualified 3rd party for that, they are the ones that can answer all your questions about what is and is not allowed.

[Carl]

Something just caught my eye. With a 1031 exchange, both property owners must use the property they receive as rental property. You can not do a 1031 exchange where the recipient of your property will use it as their primary residence.

[Anonymous_]

---

@Carl wrote:

....With a 1031 exchange, both property owners must use the property they receive as rental property. You can not do a 1031 exchange where the recipient of your property will use it as their primary residence.

---

That is simply incorrect.

The use by the new owner of the relinquished property is totally irrelevant; the new owner can use the property in any way they desire without have any adverse impact on the exchange.

What is relevant, however, is the use by the previous owner (who owned the relinquished property) of the replacement property.