Can I 1031 Exchange Land

[Paul Ivanov]

Hi BP,

Is it possible to 1031 exchange Land to purchase another home/ land for equal or greater value? If so, does it work the same as selling a home and 1031 exchange for another home at equal or greater value?

Thank you!

[Dave Foster]

@Paul Ivanov, any type of real estate held for investment can be exchanged for any other type of real estate you intend to hold for investment. If you purchase at least as much as your net sale you'll defer all tax.  And if you move from land to constructed building you will gain depreciable basis.