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According to the National Association of Realtors, the vacation home market is heating up again and many real estate professionals are reporting strong sales in many vacation home hot spots.

In response to increased activity in many vacation markets, Asset Preservation has created a brand-new Vacation Home Handbook that covers many tax issues related to the ownership and sale of a vacation or second home. This brochure is very comprehensive, contains hyperlinks to key tax code sections and provides useful guidance to property owners, real estate professionals, closers, attorneys and CPAs in resort communities and vacation home marketplaces throughout the United States. This is a “must have” resource for anyone involved with real estate in a vacation area or resort market!!

API’s Vacation Homes Handbook contains the following information:

TAX TREATMENT AT DISPOSITION: QUALIFYING FOR A 1031 EXCHANGE:
This section discusses the “safe harbor” for exchanges of vacation homes and also what will not qualify for an exchange of a vacation home property.

TAX TREATMENT DURING OWNERSHIP

1. Second Home/Vacation Home with No Rental Activity
   1. Tax Consequences during Ownership
   2. Tax Consequences at Disposition
   3. How to determine if a vacation property could be considered a principal residence and qualify for Section 121 tax exclusion
2. Second Home/Vacation Home Rented Less than 15 Days a Year
   1. Tax Consequences during Ownership
   2. Tax Consequences at Disposition
3. Vacation Home Rented for More than 15 Days a Year
   1. Tax Consequences during Ownership
   2. Tax Consequences at Disposition
4. Property Held Primarily for Investment in a Vacation Area
   1. Tax Consequences during Ownership
   2. Tax Consequences at Disposition
CONVERTING A VACTION HOME INTO AN INVESTMENT PROPERTY
1. USEFUL LINKS TO CALCULATE CAPITAL GAIN TAXES AND MUCH, MUCH MORE…

Asset Preservation has an experienced team in our Commercial Division with many years of expertise and experience handling technical “Parking Arrangements” including reverse exchanges. When a 1031 exchange requires the purchase of a replacement property before the sale of the relinquished property, a reverse exchange is the solution. The IRS released Revenue Procedure 2000-37 which provides a “safe harbor” for exchangers to perform a reverse exchange.

Click on these links to learn more about Reverse Exchanges and Parking the Relinquished Property.
For questions about reverse exchanges, email API’s Reverse Department at reverse@apiexchange.com.

Asset Preservation would appreciate the opportunity to work with you on your next exchange regardless of how simple or complex. Give us a call at 800-282-1031 to open a 1031 exchange file.  Or to open a 1031 exchange file online, email us at info@apiexchange.com.

API is committed to providing its exchange customers with unmatched service and the highest level of security available in the 1031 exchange industry. From the customer’s first contact with an API representative, API’s professional exchange counselors, attorneys and accountants work together to meet the customer’s service needs in order to ensure a smooth transaction with no surprises. In the background, API’s management maintains tight financial controls and multi-layered security systems necessary to provide a level of comfort and performance quality relied on by sophisticated investors and corporate America. We call this the “The API Advantage™.”

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