A multi-asset exchange occurs when a taxpayer is selling property that consists of more than one type of asset. Often a taxpayer can combine more than one type of tax shelter in an effort to lessen their tax liability. For example, Section 1031 can be combined with the Principle Residence Exclusion (§121) in a sale that includes investment property and a taxpayers primary residence. (Rev. Proc. 2005-14). The sale of a duplex, a business or a ranch would all be examples of a multi-asset exchange.
Tax deductions can be taken as a property depreciates. If the property is sold at a higher value than it's depreciation deductions would show, depreciation recapture tax is due on the difference at 25%.