1031 question

[sbaTexas]

 Can a 1031 exchange be used to sell one investment property and then 1031 the proceeds to pay for the remaining mortgage balance on another rental property i own?

 Or is a 1031 exchange only doable on rental properties when A new purchase is involved?

[Aegishjalmur]

Only works when using the proceeds to acquire another rental. It's considered by the IRS as a Like-Kind exchange, so as you are exchanging properties(selling one and using proceeds to acquire 2nd) the gains(if any) are taxed but the exchanged portion is not. Using it to pay down an existing mortgage does not qualify because it is not an exchange of funds, it would be pure gains.

[NoNonsenseLandlord]

It needs to be a new rental.  Or investment land.  Or a partnership.  Or ...  Lots of options.

[CowboyAndIndian]

Can a 1031 exchange be used to sell one investment property and then 1031 the proceeds to pay for the remaining mortgage balance on another rental property i own?

No.

Or is a 1031 exchange only doable on rental properties when A new purchase is involved?

A 1031 is used to sell a business and replace it within 180 days without a tax event. It can be rentals but it can be other kinds also.

I did a 1031 to sell a rental property and buy a replacement property. Lots of good information on the thread where I asked the question (https://forum.mrmoneymustache.com/real-estate-and-landlording/questionsadvice-about-rentals-gt-1031-exchange-gt-rental-gt-primary-residence/)