No, you can't just sell your property for money and use the money to buy another similar property within 180 days, unless you use a "Qualified Intermediary". You must either exchange your property directly for another property, or use a Qualified Intermediary for a "three-party exchange". If you are considering a like-kind exchange, you will need a real estate agent who understands how to guide you through the process.
NancyG has given the essentials of the like-kind exchange in her response. IRS Publication 544 Sales and Other Disposition of Assets covers the IRS rules for like-kind exchanges in detail.
The gain on the property you currently own is the difference between what you sell it for and your "adjusted basis" in the property. That gain is then "split" between "recapture of depreciation you deducted (or should have deducted)" which is taxed at ordinary income rates; and "capital gain" taxed at the capital gain rates.
Your adjusted basis is typically "what you have in the property ($50K purchase + $50K invested = $100K)" minus "the depreciation you deducted (or should have deducted)". For the details on basis, click here for IRS Topic No. 703 Basis of Assets.
@ajmac3242
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
