If you’re selling off a SFH rental, can the proceeds of this be used to purchase land for commerical development?
-Mike
I believe you can do a 1031 for any type of real estate including land. You need to spend equal or more on the newer purchase and you need to have a 1031 specialist set up the transaction of the sale of your SFH prior to doing a 1031. Basically the home needs to be indentified as a 1031 exchange prior to sale and I believe you have 90 days to buy your next purchase using the proceeds(profits).
The answer is, it depends upon how you are going to use the property once it is developed. We need more facts and circumstances before anyone can give you a definitive response.
Yes, any investment or business real estate can participate in a 1031 exchange for any other investment or business real estate. It is not enough that the property be real estate, the property must also be used for a qualified investment or business purpose.