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Updated 10 months ago, 03/07/2024

User Stats

8
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3
Votes
Alex Yakubovich
3
Votes |
8
Posts

STR and 1031 Exchange

Alex Yakubovich
Posted

If I have an STR (Short-Term Rental) property and have utilized 100% of the Short-Term Rental Depreciation for that property, what would happen after I execute a 1031 Exchange? Would I be able to claim new Short-Term Rental Depreciation for the new property?
For example, if I had $200k in depreciation on an $800k condo and I did with a 1031 Exchange, acquiring another condo, can I continue claiming Short-Term Rental Depreciation? It seems like an infinite loophole (conducting a 1031 Exchange every two years and subsequently claiming Short-Term Rental Depreciation repeatedly). Or perhaps, am I missing something?

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