1031 Exchanges and Vacation Homes – What you need to know.

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

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Massachusetts Renter’s Security Deposit Law

As a landlord, what am I allowed to do with a renter’s security deposit before they need it back? Am I able to reinvest it into my property? In a word—no. In two words, ABSOLUTELY NOT. Massachusetts tenancy laws are very favorable to residential tenants. This is understandable, as such tenants have their home to lose, but it can lead to frustrating situations when a tenant is uncooperative, remiss in paying rent, or blatantly disrespectful to the property and its furnishings. The law in Massachusetts allows landlords to collect ONLY ONE MONTH security deposit and the last month’s rent. You cannot collect more in any way directly or indirectly. They cannot prepay rent either. These monies must be kept in a separate, interest-bearing account, with all the relevant details of the bank and the account provided to the tenant within thirty days of move-in. We usually put that language right

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