Google AI answer:
- Converting a primary residence to an investment property: Live elsewhere and rent out the former residence for at least two years.
- Selling a duplex: If you live in one unit and rent out the other at fair market value, you can use the primary residence exclusion for the unit you occupy and use the 1031 exchange deferral for the other unit.
- Converting a rental property to a primary residence: Meet the IRS's "qualified use" requirements, which include:
- Not making any custom changes to the rental for your use
- Renting out the property for at least 24 months
- Not living in the property for more than 14 days out of every 12-month period
- Renting out the property at the market rate
- Not making any custom changes to the rental for your use
- Hold the property for at least five years before claiming a Section 121 exclusion on the sale
- Live in the residence for at least 24 months to qualify for a Section 121 exclusion