Im selling some rural acreage that has a structure on it that is occupied seasonally for living quarters. How will this affect the capital gains tax on the sale of this property?
If the person using the property is someone other than yourself and you are collecting rent, you can do a 1031 exchange and not pay capital gains tax. If you use this property more than 14 days per year, it may be considered a second home, and you will owe capital gains on sale unless you structure a Private Annuity Trust or Charitable Remainder Trust. If the property can be divided into separate parcels and sold separatly, you may qualify for a partial 1031 exchange. Find someone who specializes in capital gains strategies and find out which you are eligible for.
