Question:
“Can I do a 1031 exchange on my vacation condo?”
Answer:
I talked with a 1031 expert said about doing an exchange with a vacation property. Here’s what she said:
A second home that is not reported on Schedule E and the interest is written off against your personal income does not qualify for a 1031 exchange.
However, you can convert a second home to a vacation rental that does qualify for a 1031 exchange. You can amend your tax return back three years, so maybe you can qualify by doing that.
Please consult a tax advisor!
