An IRS Gift: Section 1031 Exchanges for Second Home Owners
By: Myles, March 5th, 2008
As reported the Inman News, the Internal Revenue Service has just handed investors and second-home owners a new gift in the form of a safety net that provides a “safe harbor” for taxpayers who wish to swap the property via a Section 1031 tax-free exchange even though they have enjoyed personal use of the property.
Revenue Procedure 2008-16, which goes into effect March 10, 2008, officially allows limited personal use of an investment property and will not prevent a dwelling unit from qualifying as property held for trade or business or investment use for purposes of the tax-free-exchange rules.
Tags: 1031 Exchange
Entries