Hopefully, the latest IRS Revenue Procedure ruling will help you to determine whether your vacation home qualifies for a 1031 Exchange. If you don't own one, this ruling will help you to plan your use of the property if you are about to purchase.

Some highlights are:

• Property must be held for 24 months.
• 14 minimum days rented out in a 12 month period.
• Owner can use for 14 days of personal enjoyment; or 10% of rented days, whichever is greater.
• Owner can take a reasonable number of days for "maintenance tasks."

As this is a safe harbor ruling, failure to comply with all of the requirements will not necessarily preclude the use of 1031 Exchange.