1031 exchange and increasing basis

Dear 1031x: If a residential rental is fully depreciated, assuming  everything else is equal (Property tax, income, etc.) does it make sense  to exchange into a different rental to gain new depreciation?

Dear S: When you do a 1031x you carry forward the old basis into the new property.   Therefore you do not "reset" the basis of the new property at its purchase price.  1031x allows you to change the size (larger), kind (any kind of real estate works) and location of your real estate investment.  But you should only sell and repurchase using a 1031x if you think your investments goals are being furthered. S.

Steve Hickox
Attorney / President