All Forum Posts by: Kyle Knudsen

Hello,

I’m looking for guidance on if a 1031 exchange is applicable in my situation.

I currently own a single family rental property that I’m planning on selling. The sale price will most likely be around $500,000 and the mortgage is currently about $200,000.

I plan on using the profits (let's just say $300,000) to build an ADU on property that my family owns in Central Oregon. The property is under a family trust. The ADU would then be used as a long-term rental.

Does this qualify as a “like-for-like” property exchange even though I’m technically not buying another property and does a 1031 apply?

Thanks!