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Updated almost 4 years ago,
Selling Short Term Rental in Maine - Capital Gains Advice / HELP!
This is my first post since joining Bigger Pockets. I need some expert advice on Capital Gains tax and other taxes for selling our rental property in Maine. Let me explain the situation... any help, thoughts and guidance would be very much appreciated.
I had big plans to expand our success with Airbnb and our rental property in Maine and purchasing more properties. However with COVID-19, life has had other plans for our family. Here is our Airbnb Listing on Airbnb. https://www.airbnb.com/rooms/2...
We reside full-time in Pennsylvania and unfortunately due to various challenges from COVID, we've had to pivot our focus on our core business. We listed our property yesterday and we've been getting a lot of traffic and positive feedback in the short 24 hours its been listed. https://my.flexmls.com/Mitchel...
We're selling it as a turn-key business with full-season bookings for the 2021 season in place. We are selling it furnished with most of the inventory. the plan is to attract investors looking for this type of investment. We've already seen a lot of traffic and expect offers above asking.
Many factors have caused this decision. Ages of our children, family loss, no time to travel to Maine, reduced income and more. I won't go into all of the specifics nor want to justify how we arrived to this decision.
We don't plan on purchasing another property at this time. I was wondering there is anyway to use the profit and purchase an Airstream and list that as a short-term rental to avoid capital gains. My plan would be to do the same thing with the airstream here on our PA property as we have in Maine with the house. Could that be considered a like-kind exchange in this case if we used the 1031 Exchange? Or is there another way?
Or is there any other situation that would NOT require me buying land with a house but would allow me to make a smart investment rather than using the money towards capital gains tax?
Also, please wish us luck that we get above asking price, hahaha!
Any solid advice would be help.
Thank you, Andy