Good news for all you folks who own investment property for appreciation purposes in a ‘vacation’ area (Lake Tahoe, Hawaii). Exchanging this property will be a whole lot easier.
Per March 10, 2008 the IRS officially allows limited personal use of an investment property and will not prevent the qualification of a property held for trade or business or investment use for purposes of the tax-free-exchange rules. Here is a link to an article from Tom Kelly.
Using your investment property 1 or 2 weeks a year and keep it vacant for the rest of the year and still qualifying for 1031 exchange rules is ok by the IRS.
Sonoma County is a great area, historically track records of property values doubling every 10 years, the wine county is a great vacation destination and on top of that: great opportunities right now!
Have a great day.
Mirjam (mirjam@c21alliance.com)
