Pretend my last name is McDonald. Further, pretend that I am a farmer. AND on my farm–E- I, E- I – O, –ENOUGH of the nursery rhyme–but if I had a farm and I lived in the farmhouse but farmed the surrounding land, I would have a mixed-use property. The farmhouse would be my personal residence and the surrounding farmland would be a property that I used in my trade or business (in this case, farming) or was being held as an investment and could be used in a mixed-use 1031 Exchange transaction.