1031 exchange proceeds into tax deeds?

[Roger Gelpey]

Hello all, I was wondering if as the above says, I can use 1031 proceeds to buy either tax deeds or even tax liens. I wasn't sure because of the redemption periods and found no direct info on google. Thanks very much!

[Dave Foster]

@Roger Gelpey, Nope.  The 1031 exchange is a sale of investment real estate followed by a purchase of investment real estate.  Purchasing tax liens is purchasing a finance instrument.  That is not like kind.  You must both sell and buy actual real estate.