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1031 Exchange and rehab
I have a rental (that's been vacant for the last year - family member - health issue). Now I would like to do a bit of rehab on it to maximize profit (est. 30k) and sell it 1031 for a property closer to my location. Is the rehab in any way deductible from the amount needed to roll into the new property or must I come out of pocket for the rehab and roll the entire sales price into the new property to avoid Long Term capital gains at this time?