It depends:
if it's a "community toy" and kid #1 has had it for a while I tend to make them give it up and then I let them play with a "put up toy" (ie: coloring book, play dough, board game).
If it's a "community toy" and kid #1 just started playing with it I do the whole....x more minutes and Kid #2 gets it then I let them play with a "put up toy" (ie: coloring book, play dough, board game).
If it's their own toy (like a gift they got) I make them go to their room to play with it (or in the playroom) and then I give Kid #2 a "put up toy" (ie: coloring book, play dough, board game).
We live in a house with 5 kids ranging in age from 13 to 2....so I'm sure my way of dealing is different then others. But I'm a BIG proponent of sharing and unless you are playing with something that was a gift to you (or you bought yourself for the older kids) then all the toys belong to everyone and need to be shared accordingly. If it's a toy that can be played with together then they do that....if it's a toy that only one person can play with then there will be a time limit placed in that toy. It works well and we don't often have to many fights. What has really helped in those "put up toys" I typed about....almost 9 times out of 10 kid #1 will gladly give up their toy for those!!!
