Like-Kind Exchanges of Personal-Use Residences

12 Pages Posted: 22 Jun 2008 Last revised: 25 Jun 2008

Date Written: June 19, 2008


The law governing section 1031 exchanges of personal-use residences ranges from very explicit, in the case of principal residences, to very vague, in the case of mixed-use second homes. The law excludes from section 1031 nonrecognition exchanges of property used solely for personal use. The IRS has provided guidance regarding exchanges of mixed-use principal residences and has provided an all-or-nothing safe harbor with limited applicability for exchanges of mixed-use second homes. To complete the body of law governing exchanges of personal-use residences, this article suggests that the IRS should provide broader guidance for exchanges of mixed-use second homes.

Keywords: section 1031, vacation homes, second homes, principal residence, like-kind exchange, tax-free exchange

JEL Classification: A00, E62, H25, H26, H24

Suggested Citation

Borden, Bradley T. and Hamrick, Alex, Like-Kind Exchanges of Personal-Use Residences (June 19, 2008). Tax Notes, Vol. 119, No. 12, 2008, Available at SSRN:

Bradley T. Borden (Contact Author)

Brooklyn Law School ( email )

250 Joralemon Street
Brooklyn, NY 11201
United States


Alex Hamrick

Wachovia Bank ( email )

United States

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