With it being vacation season when many people gather with families and friends at their vacation property, owners often wonder what they can do to address the tax ramifications of their vacation property should they decide to sell. Vacation property, especially those on Cape Cod and other high demand vacation spots, appreciate quickly and with that owners become concerned about the capital gain tax consequences upon the sale of the property. In other instances, real estate investors want to consider using proceeds from the sale of investment real estate to acquire a vacation or second home, utilizing the profits from the sale to defer the taxes. Over the last forty years, there has been some changes as to whether vacation property could be subject to a 1031 exchange – this article will detail the history and the state of the law in 2023 on vacation property 1031 exchanges so that