Article Date:
March 2008

Word Count:



WOW! IRS Creates Safe Harbor for 1031 Exchanges of Vacation Homes and More

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.

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