Agent

Vacation-home owner misunderstands tax break

Do nonrental properties qualify?

DEAR BOB: A friend owns a vacation home at Lake of the Ozarks in Missouri. She said if she sells, she has 45 days to buy another piece of property, perhaps a condo in Florida, before she owes tax on her profit. Is this correct? --Sue E. DEAR SUE: No. Your friend is mistaken. She should consult her tax adviser. Purchase Bob Bruss reports online. Unless she is selling a rental property, which can qualify for an Internal Revenue Code 1031 tax-deferred exchange, she will owe capital gain tax on her sale profit. There are no special tax breaks for the sale of a nonrental vacation property. MUST A JUDGE APPROVAL PROPERTY PARTITION? DEAR BOB: You often discuss partition lawsuits where one co-owner wants to sell but the other co-owner doesn't. Does a judge have to grant permission for the partition lawsuit to force the sale of a property? If so, when one co-owner wants to buy out the other co-owner, might the judge deny a partition sale and allow the purchase by the co-owner? --Mark S. DEAR MA...

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