To qualify for a tax-deferred exchange, the property must have been held for investment or for income producing purposes. Typically your second home will not qualify for this treatment.  Some questions to ask yourself in this situation include:

• Have you rented the property out?
• How have you treated the property on previous year's tax returns?

There are specific strategies for converting the use of a property into one appropriate for exchange (referred to as conversion).  This is where you need the assistance of an experienced Qualified Intermediary to properly assist you.