At 1031 Exchange Place, we specialize in helping real estate investors defer capital gains taxes through 1031 exchanges. And the good news is that yes, you can exchange a property that has been used for short-term rentals like Airbnb.
Here's how it works: a 1031 exchange allows you to defer paying capital gains taxes on the sale of an investment property by reinvesting the proceeds into like-kind property. And since short-term rental properties are considered investment properties, they can be exchanged just like any other investment property.
Now, there are some rules and requirements that you'll need to follow to make sure your exchange is valid. For example, you'll need to identify your replacement property within 45 days of selling your Airbnb property and close on the new property within 180 days. You'll also need to make sure the replacement property is of equal or greater value than the property you sold.
But as long as you follow these rules, you can exchange your Airbnb property for any other investment property that qualifies for a 1031 exchange, whether it's a rental property, commercial property, or even vacant land.
So if you're looking to defer your capital gains taxes and reinvest in a new investment property, consider a 1031 exchange with 1031 Exchange Place. We're here to help you navigate the process and make sure you're set up for success.