There has been lots of debate within the industry as to whether or not you can 1031 exchange vacation properties, second homes and properties that were formerly your primary residence. There were many opinions being circulated and lots of misinformation.
The Internal Revenue Service has finally issued guidance regarding the 1031 exchange of vacation property and second homes. Here is a link to an article that we wrote BEFORE the recent guidance was issued on vacation properties: http://www.exeter1031.com/article_vacation_property.aspx. It needs to be re-written in light of the new ruling and will be completed by early next week.
You can read the new ruling http://www.exeter1031.com/1031_exchange_revenue_procedure_2008_16.aspx issued by the IRS regarding the new 1031 exchange rules for exchanging vacation property and second homes including the rental and personal use requirements and limitations.
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