We're getting ready to sell our primary home turned rental property. We haven't lived in the property for 8 years.

The current rental has a contract on it for $238k. After improvements, mortgage payout, realtor fees, we will clear $70k.

The money from the sale will go toward the purchase of another rental property, valued at $80k.

Since the price of the second property is less than the price of the first property, can we still use a 1031 exchange? If not, what are our best options to avoid capital gains tax on the full sale price of the current rental property?

We're getting ready to sell our primary home turned rental property. We haven't lived in the property for 8 years.

The current rental has a contract on it for $238k. After improvements, mortgage payout, realtor fees, we will clear $70k.

The money from the sale will go toward the purchase of another rental property, valued at $80k.

Since the price of the second property is less than the price of the first property, can we still use a 1031 exchange? ==========>>yes it is A PARTIALLY TAX-DEFERRED EXCHANGE An exchange is not an ?all or nothing? proposition. You may proceed forward with an exchange . You will, however, be liable for paying the capital gains tax on the difference (?boot?)

If not, what are our best options to avoid capital gains tax on the full sale price of the current rental property?====.As mentioned above
Exchanges where a portion of the gain is taken in cash or other "boot" property, and the balance of the gain is invested in qualifying replacement property.