Selling a single family home to pecan orchard?

Question

I'm selling my Georgia single family home and was wondering if I could pay off my Florida home on 15 acres with a 1031 exchange.  The 15 acres has over 100 pecan trees and 1 acre of orchard tree for a pick-a-patch, I also live in the home on this 15 acres.

I thought I could also payoff the 15 acre home/farm and lease out the pecan trees and acreage?

I also thought about putting 6 RV nightly rentals spots on 5 acres but I would still need to payoff the mortgage before starting the RV sites?  Could I payoff the mortgage if I intend to rent out RV sites?  Could I split my property into a 5 acre RV rental property and keep my home on the remaining 10 acre site?

I really don't want to buy another single family rentals and just exploring other options before I just pay the taxes. Would timber land be an alike type? Or does it have to be some type of building for rent?

Dave Foster · Answer

@Ray Howard, That sounds delightful.  But The 1031 exchange has to be a sale of investment real estate followed by a purchase of investment real estate.  You can't exchange into property you already own.

You could purchase land next to you to use for the pecan orchard or camp ground.  But it has to be a new purchase.

Joe Splitrock · Answer

No because you already own the other property. Primary residence also doesn't qualify. Like kind doesn't have to be identical, so I think you could exchange into timber land or an RV park if you didn't already own it or it wasn't your primary residence.