DEAR BOB: In a recent response to a reader, you said Congress enacted legislation effective Oct. 22, 2004, affecting rental property acquired in an Internal Revenue Code 1031 tax-deferred exchange. Does this apply to all such property, or just to rental property acquired after that date? – Harry S. DEAR HARRY: The amendment to Internal Revenue Code 121 affects a rental property, later converted into a principal residence, and sold after Oct. 22, 2004. The date of property acquisition in a tax-deferred exchange doesn't matter. Purchase Bob Bruss reports online. Thousands of savvy realty investors have sold their rental properties, such as apartments, commercial property, or a business property, and made IRC 1031 tax-deferred exchanges for single-family residences of equal or greater c...
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