Have you thought about upgrading your vacation rental property but were afraid that you'd have to pay capital gains on the sale? Nicely, Uncle Sam has created a way, called a '1031 Like-Kind Exchange', to make the trade, deferring any capital gains taxes until the final 'cash-out', which can be decades down the road. These 1031 exchanges have a number of rules and need to be executed correctly, but can save many thousands of dollars.
Forbes.com ran an article called the 'Ten Things to Know About 1031 Exchanges'. It's good reading. Be sure to read #10 for vacation homes.
If you'd like to explore a 1031 Exchange for your Eastham property, please give me a call.
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