New 1031 Exchange Ruling on Vacation Homes

The IRS issued a ruling that will determine how vacation homes can be qualified as investment property in a 1031 exchange.

1031 exchanges are a marvelous tool for real estate investors, check out the link to see how this works with a vacation home. There has always been a problem with the determination of vacation homes as personal or investment property. Now we have very clear rules including ownership for at least 2 years. Also to qualify as investment property, ie be considered in a 1031 exchange the property must be rented at fair market rent for at least 14 days in each 12 month period. There are also strict rules for the owner's use and it goes without saying document everything or don't even try an exchange. To find out more check out the link

1031 Exchange is fascinating and seems complicated but there are a professionals who work in this field and make it a lot easier. This is a tool every Realtor should have in their arsenal.