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I am selling my rental condo and I am going to make a fifty thousand dollar profit. My question is, can I take twenty five thousand dollars of the profit to purchase a deeded indoor parking space, and pay taxes on the other twenty five thousand dollars? Could this qualify as a 1031 exchange?

The numbers don't justify a 1031 exchange. In a 1031 you defer immediate capital gains taxes on the positive difference between your calulated profit minus your boot(non-like kind assets received or liabilities trnsfered) and calculated profit. Your boot from the sale consists of your cost basis plus your net profit minus the $25,000 real estate(Parking space) received. This appears to be larger than your calculated profit, so you will be unable to defer any gain on the 1031 exchange.
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