Does a Motor Home Qualify for 1031 Exchange Treatment?

 1031 Exchange Motor Home

The new tax law has a lot of 1031 investors asking questions. In this article, we are going to tackle the question: can a motor home be exchange in a 1031 transaction?

Tax Reform

The short answer is no, you cannot exchange your motor home in a 1031 transaction. As a result of the recent tax law that went into effect on January 1, 2018, only real property may be exchanged in a like-kind tax deferred transaction under 26 USC 1031. The code now states that:

Section 1031(a) Nonrecognition of gain or loss from exchanges solely in kind

  1. In general, no gain or loss shall be recognized on the exchange of real property held for productive use in a trade or business or for investment if such real property is exchanged solely for real property of like kind which is to be held either for productive use in a trade or business or for investment.

Check out this article for more information. 

  • 1031 Hotline: If you have questions about 1031 exchanges and the new tax law, feel free to call me at 612-643-1031.

Defer the tax. Maximize your gain.

 

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