1031 Exchange Applies to Vacation Homes
by James P. McNamara - Under Revenue Procedure 2008-16, which went into effect March 10, a 1031 tax deferred exchange, which allows the owner of an investment property to roll over gains into another “like-kind” investment property, thereby, deferring the taxes on the gains, can now include personal vacation homes under certain circumstances. However, the personal use of a vacation home must officially be restricted, usually keeping personal use to less than 14 days per year or 10% of the time it is rented out to third parties. The property must be held for investment purposes with the expectation that it will appreciate in value. Read the rest of this article…
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admin on May 14th 2008 in Finance
