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1031 - Substantial Improvement before selling
I have a 1 FAMILY RENTAL property that I have been renting out for 2 years.
My cost basis for the property is 500k.
I would like to do substantial improvement to the property by building addition
and increasing square footage by about 200%. The improvements
would cost around 400k. Then, I plan to sell it for about 1,400,000.
With proceeds, I plan to purchase another rental property(s).
Is there way I can structure this so that it qualifies for 1031 exchange?