DEAR BOB: I recently attended a real estate seminar conducted by an attorney. She said that even vacation-homeowners who have never rented their second homes can qualify for an Internal Revenue Code 1031 tax-deferred exchange of such property because they held it as an investment property in expectation of an increase in market value. Do you agree? How can I substantiate this position? – Joe P. DEAR JOE: No, I don't agree with my fellow attorney. Ask if she has any Tax Court decisions or other basis to support her opinion. I will be very surprised if she has any credible support for her position. Purchase Bob Bruss reports online. Rental property and even vacant land can qualify for IRC 1031 tax-deferred exchanges. The reason is they are clearly held for investment or use in a trade...
Get Inman via Facebook Messenger
Our top headlines delivered once a day.