Like kind exchange vacation property

Forum|Forum|4 years ago
October 5, 2021
3 replies
10 views

Can someone do a like-kind Exchange on vacation property or second home... Inherited back in 2003 in NC at fmv of approximately 235,000... were Capital Improvements after inherited.... To be sold soon at 650,000... not rented at all, no days rented... it is for the sister of a client, but I'd really like to know for myself and I'm sure others want to know, did search online and manuals seems to be different scenerios/opinions... Thank you

ProSeries Professional

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Best answer by sjrcpa

Personal use property is not eligible for a like kind exchange.

Just-Lisa-Now-

Intuit Community Champion

1031exchange is for swapping one income property for another...Im not seeing any income involved here.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

PATAXAuthor

Level 12

Yes that makes sense... And why would you want to sell it and then buy another property? Unless it is for a different location or maybe that house is haunted?....

Just-Lisa-Now-

Intuit Community Champion

The clients I have that do 1031s are generally due to location. Long distance rentals can become a PITA.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

BobKamman

Level 15

I always share with my clients the story of Nicole Simpson, who sold her San Francisco condo and bought one in Brentwood. She reported it as a 1031 exchange, even though neither were rentals. A few years later, her ex-husband OJ sent her a letter threatening to report her to IRS for tax evasion. A week later she was dead.

sjrcpaAnswer

Level 15

Personal use property is not eligible for a like kind exchange.

The more I know the more I don’t know.

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