Personal Use Rules Tightened Up for 1031 Exchanges

12:15 pm Finance

by James P. McNamara - In light of the Moore case, the IRS has taken a more lenient approach to exchanges. While it now provides taxpayers with a safe harbor, they also gave us a direct check list under which a dwelling unit will qualify as property held for productive use in a trade or business, or for investment, for Section 1031 purposes, even though they will occasionally use it for personal purposes.

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