Island Hopping as a Remote Work Environment
With more firms offering remote work as a job perk, employees are country hopping. That could mean myriad complications when they’re filing tax returns – Dreams of Working From a Beach Turn Into a Tax Nightmare
…companies from London to New York and Toronto to Berlin are formalizing and even extending their Covid-era flexible-work options, often with liberal limits on where employees can commute from and how long they can do it for….“This is more than a gimmick,” says Nick Bloom, an economics professor at Stanford University who has studied work-from-home trends. “This is a pretty valuable lifestyle offering that may be the only way you can hire good people.”Bloomberg.com
International Fractional Luxury – from Resorts to Italian Villas
The Wall Street Journal highlighted the nomad lifestyle of owning fractions of multiple luxury homes.
Sean Daly, a retired partner with a major accounting firm, has a lot of practice working with fractions. Now he has used that skill to amass a portfolio of vacation homes in pie-chart slices: one-tenth of a ski home in Vail, one-twelfth of an oceanfront retreat on Hawaii’s island of Kauai, and one-twelfth of a centuries-old villa in Tuscany. Added together, the three fractional properties—which he takes turns using with other fractional owners—cost over $1 million.
“It works a lot better than full ownership—worrying about the upkeep, spending time dealing with problems rather than going up and enjoying it,” said Mr. Daly, 63, who lives with his wife, Christie, 61, a retired law partner, in Steamboat Springs, Colo., where they own 100% of a three-bedroom house.
Rather than owning a multimillion-dollar vacation property they may visit just once or twice a year, some well-heeled nomads are opting to hop among bite-sized pieces of luxury real estate they’ve acquired through fractional ownership and so-called private residence clubs.
Using a 1031 Tax Exchange to buy Fractional Luxury
In national networking with top luxury agents during June, I learned that along with the increase in demand for resort luxury properties is a trend to use 1031 tax exchange to convert traditional investment properties into fractional luxury resort ownership.
Qualifying as a vacation rental, with the ability to book personal usages may qualify with 1031 tax code, but you must seek expert tax advise.
For a better understanding of how 1031 tax exchanges work, please watch my recent seminar with local expert David Gorenberg, Esq.
How do I explore luxury fractional resort ownership?
To start, let’s chat! I network with luxury agents across the country. Depending on your financial and lifestyle goals I’ll connect you with an expert.
For examples of offerings, check out featured fractional properties – Luxury Fractional Guide. This downtown Miami condo-tel fractional offering starts at $325K, a good price for a 1031 Tax Exchange out of a rental investment: