Steamboat Real Estate Home Search and Blog

In a recent memo, the US Tax Court denied a 1031 exchange treatment on a vacation home that was not strictly used for investment purposes. The sellers purchased it in anticipation of the property appreciating but used it as a residence for more than 14 days.

http://www.webcpa.com/article.cfm?articleid=24413

If you are a Steamboat Springs, CO, homeowner and plan on participating in a 1031 exchange, things you can do are: keep usage to 14 days the first year, keep all records of rental history, and get counsel from a tax attorney or CPA.