The two most magic words in tax law are “safe harbor.” Why? Clarity! There is nothing better than true clarity in the tax law.
Now, thanks to Revenue Procedure 2008-16, the IRS has created a safe harbor for Section 1031 tax-deferred exchanges of homes that are converted to rentals and vacation homes that you use primarily as rentals.
This procedure fixes the two-year standard for 1031 tax-deferred exchanges. It says that if the property you are exchanging is a defined rental ... Log in to view full article.