Properties involving mixed uses (combining personal and business use) can be 1031 exchanged. The portion of the property used for business use will qualify for tax deferral treatment under Section 1031. Depending on its use, the portion of the property used for personal use may qualify for the primary residence exemption (IRC section 121). Additionally, one can acquire a property that would have mixed uses. Some examples of properties that may have mixed uses are owner occupied duplexes, bed & breakfasts and farms.
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