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Jason M. Tyra, CPA
Jason M. Tyra, CPA, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 178
Experience:  Principal at Jason M. Tyra, CPA, PLLC
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Can a portion of the 1031 exchange capital be used to add an

Customer Question

Can a portion of the 1031 exchange capital be used to add an additional rental unit to a MF property we already own? Or is it 1031 proceeds only to be used for new acquisitions not improving existing property?
Submitted: 1 year ago.
Category: Finance
Expert:  Jason M. Tyra, CPA replied 1 year ago.

Hi Rick:

The gain deferment rules at IRC Section 1031 require you to acquire a new property of like-kind. The IRS doesn't allow you to use the funds to improve property that you already own.