ANSWER:
Yes. There are no requirements (as there was under the old law) that the home is your principal residence when sold. As long as it was your principal residence for periods
totaling more than 2 years during the 5 year period ending on the sale of the home, you qualify.
1031
The 10/2004 Tax Law changed the rules for sale of a personal residence acquired in a 1031 exchange. The primary residence cannot be sold (tax free) for 5 years after its acquisition. New Section 121(g).
For more information, see 1997 Tax Act
Return to 1997 Tax Act Question and Answer Index
Return to Real Estate Directory
Return to Home Page