If a property has used all depreciation, What is the next move?

[John O'Sullivan]

If a property has used all depreciation, What is the next move one should consider?  Sell and do a 1031 Exchange?

[Dave Foster]

@John O'Sullivan Here's the menu:

1. Sell and recapture all of that depreciation at 25% plus the tax on gain.

2. Sell and 1031 into a similar priced property or properties and defer all depreciation recapture and tax on gain. But have no depreciation to write off against income.

3. Sell and 1031 into something larger and get additional depreciable basis.

4. Sell and 1031 and go into a passive instrument like a TIC. The depreciation and gain remain un-recaptured. And you get passive income stream.

Not a bad option in the bunch.  Just depends on your druthers.