Help me understand depreciation for a 1031 Exchange
Hi. I'm contemplating doing a 1031 exchange on an SFR and using the proceeds to buy a vacation condo that I will do STR's on for at least 3/4 of the year. I do intend to use the property for a few weeks of the year myself, but it is definitely an investment property. I need some help understanding how much money I am going to have from the proceeds of the sale of my SFR, in regard to depreciation. Here are the details:
Property was purchased in 2018 for $59,900.
Owe $44,000 on mortgage.
Realtor said it could sell for $80-85,000 right now.
(Had a Cost Seg Study done on the property, but I'm not sure what number(s) you need me to provide from it; please advise and I'll provide the information you need.)
I understand the rest of the 1031 Exchange process, but I'm confused about how to factor the depreciation in so that I have a better understanding of what amount I can use to purchase the vacation condo. Thanks!