For people who transfer your main the place to find a rental property (or explore part of the living area to have productive explore during the a swap otherwise organization as with Rev. Proc. 2005-14, advice step three6), the fresh new change legislation around section 1031 and you may difference of money legislation not as much as part 121 can get one another use.

If your criteria away from each other sections 1031 and 121 try fulfilled, the part 121 different are applied basic so you’re able to realized obtain; area 1031 after that can be applied, in addition to one acquire due to depreciation deductions.