1031 Classification of Second Homes

By: Ed Horan, Certified Exchange Specialist® To qualify for a like-kind exchange, IRC Section 1031 requires that the property be “held for productive use in a trade or business or for investment.”  The property will qualify when it is being held for use in a trade or...

Five Out Of Eight

Proposed Change to Primary Residence Exclusion Rules to Five out of Eight Years One of the proposed provisions not getting much attention in the House Ways and Means Committee Chairman Dave Camp’s (R-MI)  “Tax Reform Act of 2014” is Section 1401...

Proposed 1031 Change in President’s 2015 Budget

In addition to the severe tax reform suggestions in the House and Senate tax reform draft discussion papers the 2015 Presidential budget proposes that real property 1031 exchange deferrals be limited annually to $1 million per taxpayer. Also there would be rules for...

1031 Exchange of Vacation Property

Our concern is that many writers are implying that a 1031 exchange can be done only if the conditions in IRS Revenue Procedure 2008-16 are met. This is not correct !! Since it was never clearly stated when second homes could qualify for a 1031 exchange, the IRS under...

Avoid the 3.8% Medicare Tax with a 1031 exchange

IRC Section 1.1411 regulations spell out what is to be included in Net Investment Income that may be subject to the 3.8% Medicare Tax for years 2013 and beyond. If you sell a property – SURPRISE – the gain may push you above your status threshold. The gain from...

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