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Updated over 5 years ago,
Splitting lot - how to do 1031?
I own a SFR on a double lot. I'd like to split the lot, keep the SFR, and sell the (new) empty lot.
After I pay expenses, I'd net something like $45K from the empty lot.
I'd like to avoid capital gains on this $45K. I'd like to do a 1031 exchange, putting this $45K as a down payment on another property.
Since I'm not selling the entire original property, can I do a 1031? If yes, how?
If I can't do a 1031, can I use the $45K to pay down the mortgage on the SFR and avoid cap gains that way?