Rental Investment vs. Flip

[John Mano]

I purchased a rental 4 years ago for $40k (no mortgage) and it's been rented for the first 3 yrs then last year I decided to fix and sell.  Spent $100k (no loan) on repairs and upgrades and I have an agreement of sales for $250k.  My questions are:

1.  does this qualify for the 1031 exchange?

2.  if yes and I buy a replacement property for $200k, what will be the basis for this property?

3,  since I will getting back about $50k, do I pay capital gains on that or will I have a loss because I would deduct the $100k I spent on repairs and upgrades?

Thank you for your feedback