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New Member
posted May 16, 2023 8:13:05 PM

I need to get information on a partial exemption for a 1031 exchange. Has anyone ever done this?

I sold my primary residence that was owned less than 3 years - did a 1031 exchange and purchase additional properties. I would like to do a partial exemption if I can figure out what it is and how to do it.

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2 Replies
Level 15
May 16, 2023 11:46:57 PM

The IRS says you can't use setion 1031 on your prinmary residence.

Level 15
May 19, 2023 3:16:51 PM

Are you thinking of a partial capital gain exclusion?  Scroll down to "Does Your Home Qualify for a Partial Exclusion of Gain?" in this IRS reference for the rules:

https://www.irs.gov/publications/p523#en_US_2022_publink100073096

 

This commercial website (with which I have zero affiliation) discusses different scenarios for combining a capital gain exclusion with a 1031 exchange:

https://www.exeterco.com/article_overview_1031_121_combination

 

My advice: consult a local real estate tax attorney.