The personal residence (for purposes of taking a capital gains exclusion) has a use and a time test ..... You have to have actually used it AS your personal residence, and have to have lived in the home for any 24 months - don't have to be continuous - out of the last fuve years
dorry "Five" years
1031 exchanges, however, CAN NOT be done with personal residence ... must be investment or business use ... and the property exchanged for has to be like-kind (business for business - investment for investment, etc)
Here's an excellent overview of the 1031 exchange: http://www.1031.org/about1031/faq.htm
and here's the IRS guidance on it: http://www.irs.gov/uac/Like-Kind-Exchanges-Under-IRC-Code-Section-1031
I think this answers it all ... to answer your specific question ... if you pass the personal residence test for excluding gain on sale AND you never rented or took any rental tax deductions, then you'll have no problem excluding the gain .. as it was never a rental ... but again on the 1031 exchange piece THAT is a way of DEFERRING gain into the next property when it WAS a business or investment property.
Hope this hells
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question intended for taxmanrog please forward to him.
question intended for taxmanrog please forward to him. thanks
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thanks, XXXXX XXXXX 2 years is used for a primary residence that is purchased as such. ?