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Is it possible to utilize a 1031 exchange on a vacation home?

This may come as a surprise to most sellers but the answer to the above question is probably “yes”.

Thanks to a new tax court decision (Barry E. Moore v. Commissioner, T.C. Memo 2007-134) you may now be able to defer paying capital gains by implementing a 1031 exchange on your vacation home. As long as you, the seller taxpayer, can verify that your primary objective was to use the relinquished property primarily for investment and only incidental personal use (generally less than 14 days a year or less than 10% of the time rented), you may be eligible for this new program.

It is crucial that you seek advice from your tax advisor to properly plan your exchange.

If you would like further information please feel free to ask your apartment building trader advisor!

Posted By
Stephanie Moskowitz
Stewart Title
525 N. Brand Blvd
Glendale, CA 91203
(818) 486-7745

This entry was posted on Thursday, August 30th, 2007 at 4:29 pm and is filed under Questions & Answers. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.