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?
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
- 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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