Like kind exchange rules

[Wayne Walker]

I have a rental property that I wish to sell and upgrade to a duplex.  I have land in my possession and need to know if IRS like kind rules allow me to construct a duplex on the property.  Does this qualify under the rules?

[Dave Foster]

@Lora Karn, the 1031 must be the sale of investment real estate followed by the purchase of investment real estate.  You cannot exchange into improvements on property you already own.  Your only answer would be to either refi the rental now and take the money to improve the house.  Or do a 1031 and purchase a new piece of investment real estate and then refi that to get the cash to do your improvements.