Or any amount of cash you take out from the exchange are considered to be profit. 

@Tj Collins You can 1031 exchange in and out of any state, you can 1031 exchange in and out of any investment real estate - farm land, apartments, commercial, single family investments, new construction etc...The big things are timing on the 45 day window, 3 property rule and closing in a certain amount of time.

This will happen in a market with balanced supply and demand, in a monetary system like the US, with fiat currency targeting 2% inflation.- In some markets, that are growing quickly, with great jobs and lots of inbound migration, this could be a little higher - like 4-5% per year over long time periods as demand outpaces supply.

Medium of exchange.

I was suggesting that if you wanted to do a 1031 of a property held in a LLC, they would be forced to also do the 1031 exchange.

We call this eliminating the need for a 1031 exchange.

Use 1031 Exchanges to Defer TaxesIf you’re selling a property, a 1031 exchange allows you to defer capital gains taxes by reinvesting the proceeds into another property.

Do we need to go through the whole condemnation process to qualify the transaction for a 1033 exchange?

I’m looking to connect with local investors to exchange insights, experiences, and potential opportunities.Thank you, and I look forward to building meaningful connections! 

I’d love to exchange insights, explore deals, and help each other grow.Feel free to DM me or comment below.