Exchange 1031 Questions

[Rob James]

Recently re-located to California for a new job. Sold our primary residence (taxable gain less than 250K) in Utah. Would like to sell what was our vacation home in Utah, too - originally purchased vacant land 3 years ago, and got an occupancy permit on the house we built one year ago.

Rather than just sell the vacation home and get taxed on the profit, we are wondering if we can simply exchange 1031 it into a new investment property in Cali (we don't need the equity). Any issue with that since we improved the land or since we have only had a home on the site for roughly a year?