Top 10 Reasons to 1031 Exchange
#10 To consolidate or diversify real estate investments. By selling multiple properties and buying one larger replacement property, you lessen management responsibilities and may also be able to geographically consolidate property. For those investors who own one larger property, exchanging can allow them to sell and diversify into other types or locations without having to […]
If I sell rental property can I buy land to complete my 1031?
Yes, both are “like-kind.” However, land is not a depreciable asset, so be aware that you will trigger some tax consequence on the recapture of the depreciation taken on the improved property. Depreciation taken on a relinquished property cannot be rolled forward into a non-depreciable replacement property.