Selling foreclosure property

[Michele Foreman]

We have a house in Iowa that we bought three years ago as a foreclosure for $7,500. We put around $5,000 into it. We were originally planning on renting it out but decided we don't want the headache of tenants and we just want to sell it. It will probably sell for at least $80,000. How much would we pay in taxes if we do sell and would this qualify for a 1031 exchange if we find another property or would we need to rent it out first? Thankyou