1031 Tax Deferred Exchange Question?

Question

If I sell a property and buy another one using a 1031 tax deferred exchange, does it defer the both the capital gains and the recapture tax or just the capital gains. I depreciated the property out and will owe a lot of recapture tax unless the 1031 exchange will defer that to the new property along with the capital gains.

Answer 1

There will be no tax on any of the gain unless there was cash involved (e.g. you received cash as part of the transaction).