Home Exchange Industry

Wasn’t sure where to put this, but most on the real estate investment boards come here as well, so figured it was as good a place as any.

Now that we’ve sold our rental, we are eyeballing a more nomadic life. We are considering putting our residence and vacation home on a home exchange website to build points to use on stays at other people’s properties as we explore the world. Don’t want to sell our properties in case we decide we are already in the best place, and keeping the properties is a place holder in real estate should we decide to buy elsewhere. Here is an article on some of the possible sites: https://cycloscope.net/home-swap-house-exchange

One of the things that attracted me to this manner of travel is that the Feds don’t consider home exchange to be a taxable business. We would not be subject to income taxes, depreciation and recapture, or loss of $500K capital gains exclusion upon sale of primary residence. I do not have a link for this, but perhaps AJ can chime in with the accuracy on that? The basis of this is that it is a swap of residences, (or points towards a swap,) and the only one getting cash from the deal is the company that organizes it.

I would also be very interested in hearing any experiences one has had with this type of transaction. We are not in travel mode just yet, but we could be earning points towards future travel while we wait to be freed up.

Look forward to the discussion.


1 Like