ELIGIBILITY

Vacation home safe harbor

Also called: Rev. Proc. 2008-16 · dwelling unit safe harbor · second home 1031

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PLAIN-ENGLISH DEFINITION

An IRS safe harbor addressing when certain dwelling units can be treated as held for investment for Section 1031 purposes.

What it means in practice.

Rev. Proc. 2008-16 provides qualifying-use standards for certain relinquished and replacement dwelling units, including ownership, rental and personal-use conditions.

Why it matters.

A vacation home is not automatically exchange-eligible; use patterns and documentation matter.

Additional notes.

Rev. Proc. 2008-16 provides qualifying-use standards for certain relinquished and replacement dwelling units, including ownership, rental and personal-use conditions.

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