The U.S. Tax Court just issued a ruling regarding like-kind exchanges and "vacation" homes. In a Tax Court memo issued Wednesday (May 30, 2007); a Georgia couple had their vacation / second home exchanges overturned. If you have a client that is considering a §1031 Exchange, be sure to recommend that they not only talk to an experienced Qualified Intermediary but to an experienced CPA.
Like-Kind Exchanges are possible with so called vacation / second homes, but only in limited circumstances set forth by the Internal Revenue Service.
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