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loriagehring
New Member

Do we have to pay capital gains tax when selling a seasonal property? What about a 1031 exchange?

Changing our primary residence to Florida.  Will we have to pay capital gains tax on our old property when selling?
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tagteam
Level 15

Do we have to pay capital gains tax when selling a seasonal property? What about a 1031 exchange?

In order to qualify for like-kind (1031) exchange treatment, the property must be held for productive use in a trade or business or for investment. 

 

See https://www.law.cornell.edu/uscode/text/26/1031

 

 

The IRS also provides a safe harbor for such exchanges.

 

See https://www.irs.gov/pub/irs-drop/rp-08-16.pdf

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1 Reply
tagteam
Level 15

Do we have to pay capital gains tax when selling a seasonal property? What about a 1031 exchange?

In order to qualify for like-kind (1031) exchange treatment, the property must be held for productive use in a trade or business or for investment. 

 

See https://www.law.cornell.edu/uscode/text/26/1031

 

 

The IRS also provides a safe harbor for such exchanges.

 

See https://www.irs.gov/pub/irs-drop/rp-08-16.pdf

View solution in original post

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