Did you know that you might be able to sell your vacation property or second home and qualify for 1031 exchange treatment? If you own a vacation property or second home that you occasionally rent out, you may qualify for a 1031 exchange when you decide to sell. The IRS issued a ruling that may allow an owner of vacation property or a second home to still qualify for tax-deferred treatment if they follow certain safe harbor requirements. You must have owned the vacation property or second home for at least 24 months prior to the 1031 exchange. Additionally, you must have rented the property out for at least 14 days during each of those two years. Personal use of the property must be limited to not more than 14 days during each of those two years. Even if you don't meet the above requirements, you may still qualify for tax-deferred treatment, but it may involve some risk. 1031 exchanges of vacation properties and second homes are complicated, which is why you need an expert. Call Exeter 1031 at 619-239-3091.
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