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IRS Clarifies 1031 Exchange to Vacation Property

By Attorney/Best-Selling Author William Bronchick
March 6, 2008
A recent tax court case disallowed a vacation property as a "like kind" property for a 1031 exchange.  As a result, the IRS came out with a ruling to clarify when a vacation property is allowed for an exchange. To be under the "safe harbor", you must rent the property a minimum of 14 days a year.  You can use the property for personal use no more than  the greater of 14 days or 10% of the days you rent it out.  Of course, like many IRS deductions, how could they prove you used it for personal use unless they hired a private investigator! http://realtytimes.com/rtpages/20080306_irsvacation.htm

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William Bronchick, ESQ.

Nationally-Known Attorney, Author, and Speaker

Attorney William ("Bill") Bronchick, the host of Legalwiz.com, has authored six best-selling books and is sought nationwide for his 30+ years of real estate and legal knowledge. He has been interviewed by numerous media outlets, such as CNBC, TIME Magazine, USA Today, Investor Business Daily, Forbes, and the LA Times, to name a few. William Bronchick is the co-founder and past President of the Colorado Association of Real Estate Investors and the President of the Colorado Landlords Association. Click on the "About" link above for more information on William Bronchick.

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