The IRS just issued new rules regarding 1031 Exchanges. Many investors will exchange investment property for vacation homes. The IRS ruled that this is OK provided the following is adhered to:
The vacation home must be leased or attempted to be leased for no less than 14 days.
Owners cannot use the home longer than 10% of the total time the home is leased.
Owners may stay at the home as is reasonable to make repairs.
It is highly advised to keep very accurate records, especially as it pertains to leasing your vacation home. Investors need to adhere to this rule for a minimum of 24 months, broken into 12-month segments. That means that each of the above provisions need to be proved in 12-month segments.
For more information or for a referral to a 1031 Exchanger, please let me know at Connie@BozemanMontanaProperties.com.
Are you ready to buy an investment property in Gallatin or Park County? Now is an excellent time for this purchase. I'm here to help and to answer your questions. Please e-mail today or for immediate attention give me a call. Connie@BozemanMontanaProperties.com (406) 585-5414.
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