VACATION HOMES have long been a source of angst among exchangers and their advisors because of the lack of guidance on whether they qualify as an investment property for IRC §1031 purposes. In the past, exchangers readily exchanged 'second homes' based on the claim that in addition to enjoying the vacation home personally, they also purchased the property as an investment, and thus, it would qualify as a 1031 exchange. Late last year, owners of vacation homes who could only show a mere scintilla of investment intent were handed a ruling that effectively ended any ambiguity in favor of structuring a sale as a 1031 exchange.