But ya have to make some educated prognostications in life.Add this to the information your processing - What your talking about doing is eliminating around $4000 or interest expense (which is deductible anyway so really could be a real impact of eliminating $2800 or so) of debt in exchange for paying over $10K in capital gains tax (don't forget possible state gains tax as well).  

You will realize the loss for tax purposes when you sell the security, which it sounds like will happen in 2025.

Best to check with a tax pro to ensure compliance!

Here's what's very important to understand: you still owe depreciation recapture tax on $100k, not on $70k!

I like not worrying about being sued even when the local 2-bit lawyer tells me he is going to sue me (which he has done multiple times). 

If you do not get that tax credit its usually not profitable. 

I can’t imagine the returns you would have to generate. 22% federal tax, plus 8% state tax, plus 10% penalty.

That might even be enough to make it hard to be hired by a traveling nurse agency.BTW, I am not a lawyer that can give legal advice.

They would get that $500K tax free and the rest of the tax would be deferred in the 1031.A very elegant solution that puts $500K tax free in their hands now. 

The promise of accelerated depreciation and immediate tax savings is attractive.