1031 exchange

[Stephen]

My wife and I are from the UK and own rental property in
Florida, it is one of the short term rental homes near
Disney.

We have owned since December 2003.

We have just accepted an offer on the house and we intend
buying another property, this will be a home that is in an
area where short term rental is not allowed, but we will
seek to do longer term rentals (6 or 12 months). We will
have a reasonable profit from the sale of the first home.

Can we do a 1031 exchange on this idea?
If so, could we ever live in it ourselves in the future? Is
there a time frame on when it can cease to be a rental home?

BTW does anyone know in percentage terms what the capital
gains tax is on this?

Thank you in advance.

Regards

 

[wexeter]

1031 Exchange Qualifies

I just found this post and realize that it is probably too late to comment for you, but thought that the answers might help others looking for this information.

Yes, you can 1031 Exchange as planned. The fact that one is a short-term rental and the other is a long-term rental does not present any problems as long as they are held as rental or investment properties.

The key is that you must have the intent to hold the properties as rental or investment properties. So, I would recommend holding the property that you acquire as part of your 1031 Exchange for at least 12 months - 18 to 24 months if you want to be more conservative - before you move into the property and convert it to your primary residence.