Another 1031 Exchange Question - From Real Estate to RE/Business
Contemplating selling an investment property. Can I 1031 exchange into improvements on another rental property I already own as well as use capital gains for furnishing it?
If I have already began the process of improvements/furnishing (this year) and financed some of it, can I use the exchange to pay off financing or for all of the costs?
Example: $50k gain from selling rental X. I have spent $15k renovating/furnishing rental Y - 5k out of pocket, 10k financed. If I sell X now, can I exchange the $50 towards the 5k or 10k already spent on Y? Can I exchange any towards more renovations/furnishing or other business expenses related to property Y?
Property Y is a duplex vacation rental btw.