Bending Starker Exchange Rules Can Be Risky Business

Q: What can you do with the investment property you have obtained by way of a Starker exchange? No one I know who has done an exchange has, in my opinion, kept the property as investment.

 

Three examples:

? A person buys a house as a second home. His lawyer tells him that as long as he runs an ad in the paper showing that he tried to rent the property he can satisfy the IRS questions. He has used the house as a second home for the entire time he has owned it. He runs the ad in an out-of-the-area newspaper and no one has called.(Read More)

Source: Washington Post