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The IRS recently issued a ruling that will force second home owners to rent their properties if they want to sell and do a 1031 tax deferred exchange into another property. With two years of rentals and only 14 days or less of owner use per year, they will be able to do the exchange and defer taxes (assuming they will rent the replacement property as well). In the past, the rules were not clear, and many who only rented occasionally and had a lot of owner use went ahead and did the 1031 as there was nothing that said that … (16 comments)
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