1031 into paying for new construction costs for new units on existing property

[Alex U.]

1. Property A was purchased 10 years ago.  

2. Property B was purchased 3 months ago.

I would like to sell Property A, and 1031 the proceeds into an account.  Then use those funds to pay for the new construction build contractor costs on 2 units next year on property B.

Is this possible?

[Dave Foster]

Make that 100% sure @Bill B..  @Alex U. you can't exchange into improvements on property you own.  And even three months ago you would have had to do a "reverse construction" exchange to make it work.  In a reverse we take title to the new property and hold it until your construction is complete or 180 days, or when your old property sells (whichever is sooner).  while we hold title you improve your property and then the improvements would count under the 1031.