this could be real interesting...I think I woud stick to a good company that really knows what they are doing!

Joanne, I have a friend who has a second home in Vail.  She rents it some and spends some time there.  This sounds like something she needs to know about.  Especially if she is looking at selling anytime in the near future.  I know she has talked about selling but I don't think she is serious.  Either way she should know about it.

William, a good company who stays up on new rulings will make a difference!

Marchel, some preplanning will definitely make a difference now.  As long as it is rented two years prior to selling, she will be ok, but I would still have her check with her tax advisor as she will have other things that come in to the equation, I am sure. 

Hi Joanne - I heard, too, that the owner can count time spent in the property towards the rental % if they are there to do maintenance, etc., as long as they have records to prove what they were there for?

Virginia, I understand that to be true, but I bet if the owner tried to claim 6 weeks of maintenance it would be suspect!

Howdy - we are seeing an increase of people adding their second homes to our vacation rental programs - we suspect that this ruling has something to do with it

Hi Thesa, I didn't realize you did vacation rentals too.  I know that the numbers of people using vrbo.com and similar websites is growing, and I am guessing that trend will continue.  Ready for spring yet? 

Joanne - my mother-in-law who has a rental in Lake Tahoe, "got lucky" with a bad foundation and burst pipes, and had to spend a few weeks there.  She stayed at Harrah's!

Joanne- Hopefully the clarification will encourage people to buy who never thought the 1031 exchange was a possibility for them.

I look forward to more clarification--anytime the rules are murky and unclear, even the most prepared and knowledgeable people can have difficulties understanding their rights and responsibilities.

Being able to better understand one's place within the definitions of tax code will be a good thing.

Virginia, Harrah's would be a good place to stay!  Hopefully she made enough money to pay for the repairs ;)

Jennifer, anything that helps people decide to buy is a good thing!  :)

Kent, it is nice that we finally do have some clarification, but it means that a lot of people who did 1031 exchanges before and thought they would be ok, can no longer do them.  I have a few people who have done a  couple of 1031s and now have a lot of gain built up, but unless they rent their condos out and not use it so much themselves, they will now have to pay the piper when they sell it.  It is either that or die!  (Heirs inherit at current value and the gain goes away.)

we are hearing a lot of scuttle but about this new ruling - most seem to be ok with it.... but as you can imagine like your area - a large percentage of people are second home owners and buyers

Thesa, it will affect us all one way or another.  I suspect people may delay selling in order to get their ducks in a row first.