Vacation House For Sale
The cap rate (or capitalization rate) is a measure that compares different real estate investments. It is calculated as a division of the net operating profit by the current value.
To avoid unpleasant surprises during tax season, it is important to understand the tax implications of a vacation rental sale. You may be eligible to exchange your vacation property for 1031 if you have used it as an investment. However, if you used the vacation property primarily as a second residence, it might not be eligible.