Posted by dealmaker on November 15, 2006 at 15:25:47:
It’s funny but that’s about the only thing in the 1031 rules that doesn’t have a specific time on it! The “generally accepted” rule is two “tax” years to show “intent”.
That is what we used on one that we converted to our primary residence. Ours was on THREE YEARS tax returns as a rental, actually rented for less than 24 months though, and we didn’t have any problem on our audit.
I’d do it that way and you shouldn’t have any problems.
We just completed the first part of a 1031 exchange. We found a replacement property, but want to use it as a second instead of investment. Any advice? How long do we need to rent it before converting? Tax implications?
Re: converting INVESTMENT property to second home - Posted by Peter_MD
Posted by Peter_MD on November 16, 2006 at 10:57:56:
Andy:
This very same question was answered just two days ago, in my opinion, by one of the most knowledgeable individuals on this board. His advice is always “the best”. You should spend some research time reading the posts on this board and using the search engine provided.