In viewing the title of this piece, many readers may have thought that there was an error since Section 1031 is not usually identified with principal residences. Moreover, the usual hornbook law would stipulate that one's personal residence is not a qualifying asset for a Section 1031 exchange since such transactions require an asset that is held for investment or used in a trade or business. Rather, sales of principal residences are usually associated with Section 121, which provides an exclusion of $250,000 ($500,000 for those filing on a married status) of the gain that may be realized on the sale.
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