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If you transfer your primary where you can find a rental assets (otherwise play with the main living area to own active fool around with into the a swap or team such as Rev. Proc. 2005-14, advice step 36), the newest replace regulations lower than point 1031 and you can exclusion of income legislation lower than section 121 may both implement.
When your standards away from each other parts 1031 and you may 121 is actually found, the fresh new part 121 exception to this rule are used first so you’re able to know obtain; area 1031 up coming enforce, as well as one acquire due to depreciation deductions. Hardly any money gotten in return for the fresh new leasing house is drawn into account only to this new the quantity the money exceeds the newest point 121 excluded gain towards the leasing assets given up in the change.