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Updated about 10 years ago on . Most recent reply
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Exchange - Rental Property to Commercial Property ?
Hi all,
I have a duplex in Orange County, CA that I have held for 25 years and I want to consider an exit strategy. I have deducted 25 years of depreciation which would need to be recaptured on normal sale ( ouch ). So, I thought I heard of the possibility of exchanging into a commercial property and leasing it out for 5-10 years ( to a WalGreens / CVS pharmacy ) and then live off the income stream and avoid capital gains taxes.
So, is this possible ? Where would you begin to look for the commerical property ?
Thanks, Paul
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@Richard Chang As both are considered investment there should be no problem doing a 1031. We took several SFR and did a 1031into a mixed use building that had apartments, restaurant, office and retail services. Good luck to you!