Can you 1031 exchange residential for commercial ?

[Carlos Silva]

I have a single family rental home I would like to sell.  I would like to use the proceeds as a down payment for commercial real estate (raw land).  Can I do this through a 1031 exchange?

[Dave Foster]

@Carlos Silva The rules are very broad.  Any type of investment real estate to any other type of real estate is fine for the 1031.  As a matter of fact you're in the Oil industry and would appreciate this - Working and royalty interests also count as like kind for regular investment real estate.  So you can 1031 exchange a duplex for a royalty or working interest in an oil or gas well.  

The one thing you'll want to be ready for is that the 1031 into land will halt the depreciation of any further basis.  So you will lose that benefit until you later add structure to the land.