A 1031 exchange allow a property owner to swap one investment property for another that allows capital gains taxes to be deferred. LEARN MORE FROM INVESTOPEDIA
According to First American Exchange Company, many people were seeing their real estate investments appreciate at incredible rates, and in turn, were doing 1031 tax-deferred exchanges to defer their capital gains liabilities into new investment properties.
“Today’s market presents some new challenges for short-term rental properties. Changing vacation and business travel demands and habits may create long term cash flow instability. In addition, in some markets investors may see limited or no appreciation in their short-term rental property.”
Should investors take advantage of the current economy and sell their property and do a 1031 exchange?