And there you are in luck because you can purchase any type of investment property anywhere in the country and defer all tax as long as you purchase at least as much as your net sale. and use all of your proceeds from the sale in the purchase. 

I’ve heard this can have benefits, but I’m not sure where to start.If anyone has advice on how to proceed, I’d love to hear it!

I’m under contract with my latest flip, the proceeds of which will pay off the heloc that I use to buy and rehab properties.

Also, are you meeting with a "consumer" lender or a "commercial" lender?

On the consumer side with QM I can handle conventional, FHA, VA, and USDA.

That would mean splitting the sale proceeds.

If so, I would consult an attorney on the best way to proceed forward.

., equipment) are excluded from 1031 treatment and are taxed separately—goodwill is typically taxed as a capital gain, while equipment may be subject to depreciation recapture taxed as ordinary income.To minimize taxes on the sale of the business, consider strategies such as Opportunity Zone investments, which defer gains until 2026 if proceeds are reinvested in a Qualified Opportunity Fund (QOF), or structuring the sale as an installment agreement to spread taxable income over multiple years.

The auction price seems to assume that the proceeds will be applied to repay the first mortgage and the second mortgage.

For a rental property, the gain is subject to capital gains tax (15-20%) and depreciation recapture tax (up to 25%) on any depreciation claimed, unless the proceeds are reinvested.To minimize taxes, consider reinvesting the sale and insurance proceeds into another property under §1033 or converting the property to a rental before selling to claim depreciation deductions.This post does not create a CPA-Client relationship.