Can You Do 1033 Exchange On Vacation Home?
My FIL just sold his lake home that was used for vacations only and never lived in. His accountant told him that he could not roll it over into another vacation home or other property to avoid taxes. Is this true? Any suggestions?
Unless his sale falls through, your friend will have to pay the taxes at this point. To avoid it, he would have needed to rent it out for a period of time, thus delaying the sale. Look at the bright side, in this falling market he made money on the place....not a bad thing in a market where values are falling in many parts of the country.