1031 Classification of Second Homes

1031 Classification of Second Homes

By: Ed Horan, Certified Exchange Specialist® Second home classification. 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...
Vacation Home Revenue Procedure 2008-16

Vacation Home Revenue Procedure 2008-16

Vacation Home Revenue Procedure by William Horan Safe Harbor for Vacation Home The IRS published Revenue Procedure 2008-16 for the purpose of providing a Safe Harbor under which the IRS will not challenge whether a dwelling unit with limited personal use qualifies as...

VA Conformity for 1031 Exchanges

The TCJA was enacted in December of 2017. Some states have not changed their ‘date of conformity’ to conform to the provisions of the federal Tax Cut and Jos Act (TCJA). Personal property can no longer be exchanged under federal law, 1031 exchanges are limited to real...

Tax Case: Don’t mess with the IRS

A California realtor learns not to mess with the IRS. Taxpayer did an exchange of her relinquished two rental properties but acquired a residence as replacement property and used it as her principal residence. She obtained an owner-occupied loan on the replacement and...