This means the funds will be protected from the taxman, and can be easily allocated to a purchase of a new home. You have 45 days to find the right property and six months for the transaction to be completed. To make this transaction go smoothly, you should search for your next home before you rent your existing rental property. This process can be further explained in Section 1031 (Internal Revenue Code).
Selling an Airbnb property will yield more if it is in the right market. This is a legitimate business that has a track record. A property in an Airbnb location that is located at the right time will give you more than just property value. A business with a track record is being sold.
As the account's main owner, you will still be responsible for any correspondence and the payments. You need to decide who, what, and how to handle these messages and how to pay them. You should also consider the potential negative reviews that could be received during this period. This may impact your status as host. Is it worth taking the chance?
No matter the reason behind the sale, the property owner will be taxed. It is therefore important to know the property tax laws of each state or country. You can make sure that you make a profit by factoring in these taxes.
It is strongly recommended that you speak with a tax attorney in order to understand all tax implications after the sale. A Qualified Intermediary is recommended if you are planning to trade on the 1031 exchange. This will help you fully understand the process.
As in the previous scenario, you might consider adding an experienced property manager to be your co-host for managing those bookings.
It is easy to become too confident about your home and put it up for sale in the hopes that someone buys it. Research shows that overpriced properties take longer and end up costing more to sell.