1031 Exchange on Biz Asset Sale?

What is the name of your state? WA

I am a sole proprietor in the process of selling my business as an asset sale and am trying to find ways to minimize tax consequences of the sale.

I have several questions in regards to 1031 Exchanges:

1) Do I have to purchase another business of the same type? If I sell a Dental practice do I have to buy another Dental practice or can I use a 1031 Exchange to buy a Retail business?

2) Can I use a 1031 Exchange to sell a Dental practice (no real estate) and buy an investment property?

3) Can I use a 1031 Exchange for multiple purchases (say, two of example #1 or #2 or one of each)?

4) Does the purchase of the NEW asset have to be equal to or greater than the sale of the first asset or does the purchase of the NEW asset have to be = or > than the tax liability? (ex: If I sell for $500,000 do I have to put $500,000 into the new venture to qualify for the exchange or can I use $300,000? OR If I'm going to be taxed $50,000 on the sale do I have to use at least $50,000?)

I've tried reading up on this but it gets quite confusing. Thanks for your help.

I can't answer the "link-kind-ness" questions in 1-3.

The answer to #4 is a definite no. You must trade up in value and equity. You can't take cash out as part of the exchange.

2. No. Real estate can only be swapped for real estate.

3. Sure, but all exchange properties have to be of the same kind, & all must be identified within the time limits (45 days) & closed within the time limits (180 days). You could swap an apartment building for 4 rental houses or vice versa.

1. Not sure: consult an attorney. Do not take the word of the exchange facilitator. They know how to facilitate an exchange, not what qualifies in the first place.