@SORCH , having gone through all the comments/ answers/suggestions by my colleagues @Critter-3 , @Anonymous_ and @Opus 17 , and while I generally agree with the articulations, I lack some information such as (a) when did you become a US person ( Green Card, Resident for Tax purposes ); (b) how did you acquire the rental property { interest here is what was the basis at the point when you became a US person and thus subject to US tax laws including depreciation regime; (c) was the property a rental property when you became a US person; (d) from US perspective, were you planning to sell the property in one part of India ( state, locality ) and then with the proceeds buy another property in another place at different times or were you planning to really exchange ( at the same time ) one prop. for another without any monies going through your hands at all; (e) are you employing an agent to facilitate this transaction ; etc. etc.
While you answer these questions, IMHO, because of the tax law differences and exchange rate fluctuations, etc. , it may be simpler just to sell and buy rather than meet the strict timing and process requirements of 1031 ( delayed recognition of gains ) like-kind exchange.
I will awaite your answers and circle back
pk
