Daily Real Estate News  |  March 10, 2008

IRS Releases Vacation Home Ruling
The Internal Revenue Service recently issued a Revenue Procedure ruling that spells out how vacation properties can qualify for 1031 exchanges, which involve the exchange of investment properties.

The guidance aims to clear up the debate about whether vacation homes are investment or personal use properties. The ruling states that the property must be held by the taxpayer for 24 months. The holding period is broken into 12-month blocks, and during each the property must be rented at the fair market rate for no less than 14 days.

Additionally, the owner can use the property for 14 days or 10 percent of the days rented, whichever is greater, plus a "reasonable" number of days devoted to maintenance tasks. Because it is a safe harbor ruling, experts say failing to comply with all the rules does not mean the exchange will be denied or an audit will automatically occur.

However, they underscore the importance of keeping good records of the property's rental history and the dates the property was occupied by the owner for maintenance.

Source: Realty Times, Gary Gorman (03/06/08)

Buy Through Us... We'll Sell Your Home For FREE!

Purchasing A New Home? Call 407.451.3145 To See How You Can Receive A Rebate At Closing.

 Sullivan Ranch

Sullivan Ranch – Nature’s Playground is set amidst a lush natural landscape featuring 300-acres of rolling hills, oak hammocks and split rail fences. Sullivan Ranch’s prime location is just minutes from downtown Mt Dora. As you arrive home you will cross a wooden bridge with sparkling stream. The community will feature a 5,000 square foot Southern-style Clubhouse with an outdoor fireplace, a Jr. Olympic pool, a large children’s park with a water features plus a dog park!

The Orchard and Premier Series at Sullivan Ranch will feature 60’ wide lots with spacious floor plans ranging from 1,433 sq. ft. to 3,768 sq. ft. Families of all sizes will enjoy our collection of one and two-story designs. These stylish floor plans offer ample space for your family, and for entertaining visiting friends and family.

• Base Plan Prices From $178s-$306s
• Southern style clubhouse now open!

The community of Sullivan Ranch has large walking paths, so you can enjoy your time with Nature. After all, Sullivan Ranch is Nature's Playground.

Community Layout

Age Restricted Villas Available

(Two4One of Orlando & Centex Homes Are Equal Housing Opportunity Companies)

Dog Park