You can invest more than the capital gain realized if you wish, but the interest will be bifurcated solely for 1400Z-2 purposes and only the interest stemming from the qualifying investment will be eligible for the OZ tax benefits.All capital gain: LT cap gains, ST cap gains, 1250 gain, and collectibles gain are eligible for qualified treatment under 1400Z-2.If you are thinking about a QOF investment, I'd advise you to onboard a competent tax professional as an external partner on your team. 

That would be the simple answer.But since you are in CA, you get special treatment and the complicated route - you might want to look into the Delaware Statutory Trust (DST) to save on the outrageous $800 annual fee. 

Hospitality is a huge industry in SC, so if they're going to allow STRs, they may as well make sure they benefit the resident and state taxpayers more than out of state owners.

Additionally, there are about, oh a dozen or two, other ways that unscrupulous management companies are hosing homeowners.I don't want to whitewash the entire industry. 

So what's your plan for qualifying for treatment of the CapGain forgiveness?

Looking for tips and tricks from the community on making both work well.I'm sure your investment business has been built largely because of the relationships you have in the industry.

I work in the petrochemical and energy industry but I would like to start investing in real estate.

I'm currently a senior at Gonzaga University and I'm looking for connections in the real estate industry in San Diego.

Hi @AP Horvath, The relinquished property and the replacement properties would have to be held for rental, investment or business use in order to qualify for 1031 Exchange treatment. 

The problem with Orlando in general is that it is such a service based economy due to the tourism and service industry.