Posted by Robbie on March 08, 2007 at 12:05:28:
You can file for an extension and re-claim your 180 day exchange period. Your vacation home can qualify as an investment if you have not used it more than 14 days per year or 10% of the number of days you rented it for fair market value
1031 Question - Posted by Edels
Posted by Edels on March 07, 2007 at 19:48:48:
I am in the process of selling a vacation property and would like to take advanatge of 1031 exchange. Is it possible to buy 2 separate properties that in total exceed the 1031 value and still qualify for the exhcange under IRS rules?
Re: 1031 Question - Posted by William L Exeter
Posted by William L Exeter on March 09, 2007 at 22:01:10:
Here is more complete information regarding the 1031 exchange of rental property: 1031 Exchange of Vacation Property, Second Home or Second House | Vacation Property 1031 Exchange | EXETER 1031 Exchange Services, LLC |.
YES and NO - Posted by David Krulac
Posted by David Krulac on March 07, 2007 at 22:46:02:
if the vacation home is your personal second home it doesn’t quality for the 1031 exchange which only applies to investment property not either your personal residence or second/third/etc. vacation homes.
If it was a rental property then it could qualify.
Yes you can buy 2 replacement properties and sell 1 relinquished property.
You must identify the repalcement properties within 45 days of settlement and settle on the new properties within 180 days, including the 45 days.
Also you must complete the transaction before you file your Federal tax return, which could shorten the 180 days. I’m 90% certain that you can get a filing extension to caputre the full 180 days.
1031 are a little trick and it would be best to get qualified professional advise, as a simple mistake can totally invalidate the 1031.
Re: 1031 Question - Posted by Dave T
Posted by Dave T on March 07, 2007 at 22:42:35:
Depends. The structure of an exchange as you have outlined it will work. My concern here is whether the vacation property is qualified to participate in a 1031 exchange.
Vacation property, used as a second home, is not eligible to participate. Vacation property, used as a rental, is eligible to participate.
Consult a professional 1031 accomodator to determine the status of your property.
Re: 1031 Question - Posted by dealmaker
Posted by dealmaker on March 07, 2007 at 20:16:05:
Yes it’s possible. However you say you’re “in the process” of selling. How far along are you? There’s some language you will need to insert in your offer and P&S agreement.
dealmaker