If I sell non-income producing property, such as raw land with a very low cost basis, can I 1031 exchange the proceeds into an income producing property?
As long as the property being sold was held for investment and the taxpayer is purchasing property for investment, then the “like-kind” requirement has been satisfied. So, yes absolutely. In fact, this is a great investment strategy, because you are selling a non-productive asset (vacant land) and acquiring a productive asset (commercial office building) on a tax-deferred basis.
