Can I 1031 from an investment property in one state to a home in another?
I have a multi-family investment property in CO, my partner has a home in FL that's under mortgage.   The CO property is worth 2x the home in FL.

Can I 1031 from the investment property in CO into a lesser-valued property in FL with any tax advantage?  

Would the FL property have to go through another closing or can I just payoff the current?

I know there's companies that specialize in this and I will be calling them.  I wanted to get a primer here so my convos with the pros are productive.  

Thanks!
[{"id": "imxeojl", "text": "Definitely a qualified individual question. They are called \u201clike kind\u201d for a reason. If you are putting a rental property\u2019s proceeds in, you must purchase a rental property. Also, there is strict criteria for how much you must spend, time to identify properties, etc. \nYou don\u2019t have to put all of your proceeds into the 1031 though. I packaged a few properties in one transaction, the professionals did there thing, and the 1031 took x percent of proceeds. \nTalk to a REPUTABLE, local firm, often affiliated with a local title company, and a tax attorney.", "replies": [{"id": "imxissb", "text": "I don\u2019t think this is right. \u201cLike kind\u201d doesn\u2019t mean, for example, a SFR rental must be reinvented in a SFR rental. \nSFR sell proceeds can go to other \u2018investments\u2019: Multifam, commercial (eg self storage), etc.", "replies": [{"id": "imxn8wq", "text": "I meant if he was just planning on buying out his partner's house. I used the broad term \"rental property\", never specified which type. You can use a 1031 for a myriad of other asset classes too, they just need to stay in the same class, hence the advice for a qualified individual.", "replies": [{"id": "imxt4ty", "text": "They don\u2019t need to stay in the same class.\nIt must be real property for business or investment purposes, not personal residence.\nYou can exchange rental property for investment property", "replies": [{"id": "imyvc87", "text": "They absolutely, unequivocally have to stay in the same class. By \"same class\" I mean investment / income real estate to investment/ income real estate. You can't put your apartment building into a 1031, and go buy a Monet, because that is a different class.  Yes, 1031's apply to art too.", "replies": [{"id": "imyvrtq", "text": "This post is about real estate. It doesn\u2019t have to be in the same class of real estate", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "imy0ggj", "text": "Correct. Like kind just means real estate, so for example securities can\u2019t be exchanged (even if it\u2019s a REIT).\n\nPersonal residences aren\u2019t allowed - there\u2019s already a sec of tax code that gives you an exemption on $250k ($500k married) of gains for personal residences called Sec 121.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "imxg0rz", "text": "Yes, that will still\nQualify as a like kind property.", "replies": [], "depth": 1}, {"id": "imxn5kp", "text": "If the home in FL is personal use then no.", "replies": [], "depth": 1}, {"id": "imy6lkc", "text": "Don't take tax advice from reddit, especially advice on 1031 exchanges.", "replies": [{"id": "in0su7a", "text": "I\u2019d love to see how \u201cReddit told me I could do it\u201d would hold up in a tax audit", "replies": [], "depth": 2}], "depth": 1}, {"id": "imzbp22", "text": "I\u2019m not a tax professional, but I went through this issue recently and you run into two problems.  \n\n1.  You are not permitted to do a exchange from a investment property to personal property.  It has to be like kind, investment property to investment property.  You probably could figure out a way to do a loophole to make it work, but I couldn\u2019t realistically answer that question.\n\n2.  You need to incur new debt.  You can\u2019t do a exchange to pay something off, you have to have a certain amount of debt for the exchange to be tax free.", "replies": [{"id": "imzh4tw", "text": "For point 2, the total amount of debt must go up.  If you have a mortgage on the relinquished property, the replacement property must also have a mortgage of an equal or larger amount.", "replies": [{"id": "in0bn0m", "text": "Not true.  You can pay tax on the difference.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "imzkha0", "text": "Yes as long as the exchanges property is for investment reason and it\u2019s more in pricing.", "replies": [], "depth": 1}, {"id": "in054m7", "text": "The funds from the 1031 must go into an investment property, but a property you already own.  Also, if the property in FL is worth less than the CO property you're still required to remit taxes on the surplus amount.\n\nTypically, 1031 exchange targets are of equal or more value.  Example: Sell for $1.5m to purchase a $2m property.  Doesn't work the other way around.", "replies": [], "depth": 1}, {"id": "in2tg49", "text": "Thanks for all the insight! \n\nA few unfortunate, gas-lit comments but hey it's reddit.", "replies": [], "depth": 1}]