Agent

Swapping vacation homes easier under IRS rule

Feds clear up confusion over qualifying properties
Published on Jun 19, 2008

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by CareyBot

Many investors are taking advantage of the like-kind exchange, which is authorized under Section 1031 of the Internal Revenue Code. These exchanges are commonly referred to as "Starker" exchanges.

But if you own a vacation home, there has been a lot of confusion as to whether that property qualifies for the exchange.

Indeed, back in September 2007, the Treasury Inspector General for Tax Administration (TIGTA) issued a scathing report about the lack of IRS oversight of the capital gains (or losses) deferred through this kind of exchange.

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