It is obviously better to have $1 in passive losses to offset taxable income today vs $1 in losses 25 years from now.If I have a $1 million dollar short term vacation rental , using cost seg I will be able to deduct 35% ( example number, not exact) or $350k this year.

They back off any closing costs from the sales price to determine taxable basis.5.

) in my hand quickly ✅✅✅✅WITH NO TAXABLE EVENTS!!

Thankfully TX has no maintenance fees unless you are taxable under the franchise tax (approx. $1.1M in gross annual revenue).

@Emily Anderson true on the flat 24% tax rate on rental income without the possibility to deduct costs from it.Keep only one thing in mind: rental income is being added to regular taxable income (salary and rental income).So I could deduct costs before ending up with taxable rental income, however for me, it is being added and calculated together with my salary income.That means I'm easily reaching higher tax brackets even after the deductions, while with a flat rate it always stays the same (even if you earn way more rental income).

If my cash flow was not strong enough to weather them moving, I'd eat the tax increase while considering a 1031 or an outright taxable sale, both of which I've done. 

Figuring different taxability levels in a 1031 exchange if you're thinking of a partial exchange is perfectly straightforward. 

That just converts tax free funds into a taxable rental that you will have to pay to get your own money back to live on. 

The way you describe your situation, I'm going to say you fall into the 22% tax rate bracket (single over $47k, or married over $94k in taxable income).  

Pps  you do get to subtract the selling costs (in you example maybe $30k in commissions and closing costs) from your taxable profit.