Know The Rules On Home Equity Loans & Property Exchange

Want to use our home equity to purchase an investment property and plan to do an Internal Revenue Code 1031 tax-deferred exchange? There are quite a few things you need to know about a 1031 exchange before you decide to make the exchange. Mortgage101.com reports:

Most tax advisers suggest renting your former home at least six to 12 months (to show rental intent) before making an IRC 1031 tax-deferred exchange.

Read more: Homeowners eye real estate exchange, hit legal hurdle