You should check with a CPA on your specific situation, but generally, if you receive cash at the closing of a 1031 exchange, that portion is considered taxable “boot.”

Considering selling and 1031 exchanging into a multi-family in Arkansas.

Hey All,I have a plan to do a 1031 exchange a little differently than the traditional method and am looking for someone more knowledgeable than I am on this to let me know if it is doable or not.

@Heidi Kenefick Here's an article that you might find helpful regarding cost segregation studies, recapture and 1031 exchanges.

You decide to get rid of it.Your investor friends and TikTok, ahem, experts and Bigger Pockets forum posters tell you: don't sell, do a 1031 exchange!

@Perry Stanfield, I wouldn't be concerned about paying off the loan in your exchange because you will have to use all of the proceeds in your 1031 anyway to defer all of the tax.

You can’t buy the land before the exchange because you need to do the exchange for the land and/or building.

Similar concept, as a way to sell a property off instead of 1031 exchange and minimize tax obligation. 

The reason I bring this up is many people who sold a property for $700k after closing costs with a $360k mortgage and would say they have $340k in proceeds for a 1031 exchange.

Are you saying you would sell your KC buildings and 1031 exchange into a different metro?