IRS Issues Guidance on 1031 Exchange of Vacation Homes and Second Homes

[wexeter]

The Internal Revenue Service has finally issued guidance to help taxpayers understand when a vacation home or a second home may qualify for 1031 exchange treatment.

Revenue Procedure 2008-16

The IRS issued Revenue Procedure 2008-16 to help define when vacation property or second homes might be qualified use property and therefore qualify for tax-deferred exchange treatment under Section 1031 of the Internal Revenue Code.

Treasury Inspector General's Report

This long awaited guidance regarding the 1031 exchange of vacation property and second homes was a direct result of the Inspector General's Report issued on Like Kind Exchanges last September.

1031 Exchanges of Vacation Property

I've tried to pull all of the information together and write a comprehensive article on the requirements to 1031 exchange vacation homes or second homes. You can read the article here.

[BrokenCredit.com]

That's certainly helpful for understanding taxes on the 1031 exchange. Thanks for posting the IRS link.

[protaxcare]

Next time pay your taxes.... or suffer the consequences...

[andrewstephensceo]

Hi there,

When you sit down to finalize on tax-deferral and tax-exclusion strategies you should know beforehand what exactly these strategies are and which one is appropriate for you

Section 1031