1031 Exchange Rules for Second Homes

1031 Exchange Rules for Second Homes

Yes, but only if the second home is treated as an investment property. This means it must generate rental income, personal use must be limited, and you must follow strict IRS rules. Here’s a quick breakdown: Investment Use: The property must primarily serve as a rental or business asset, not just for personal enjoyment. Personal Use Limits: You can only use the property for up to 14 days per year or 10% of the days it’s rented. Holding Period: …