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The rules for the exchange are very broad about the type of investment property but very specific that it can NEVER be intended for personal use.

And what if you chnage your mind 2 years after you do the exchange?

And how would the IRS prove that the intent was for it to be personal use?
They might be able to show it if the person says something to that effect.
Or *maybe* if the person sells 3 warehouses and buys a "rental" mansion with no expected cash flow.
But it is difficult to prove intent.


I'd say it's just as difficult as someone attempting to prove that a home buyer who signs an Owner-Ocuppied affidavit for a mortgage, and moves out 2 years later had an intent for it to be a rental / non-OO.
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