If I plan to sell my rental property this year, can I use part of the monies from the sale and claim a 1031 tax free exchange?

ANSWER

The BIDaWIZ Team's Answer:

You can technically still elect a 1031 exchange even if you don't use all of the proceeds to purchase new qualified property. However, the amount that you do not reinvest will be subject to depreciation recapture and capital gain income tax. This is commonly referred to as a partial 1031 exchange.