Yes, you can take some of the proceeds from a 1031 exchange and use the rest to purchase a replacement property, but any funds not reinvested are considered boot and are subject to taxes in Prince of Wales-Outer Ketchikan Borough County, AK.
What Is Boot in a 1031 Exchange?
Boot refers to any portion of the 1031 exchange proceeds that is not reinvested into the replacement property. The IRS treats boot as taxable income in Prince of Wales-Outer Ketchikan Borough County, AK, meaning you may owe capital gains tax, depreciation recapture tax, and potentially state taxes on the amount received.