I say yes.   I don't see it as being any different than owing money to a bank for purchasing real estate.

By land contract, if you mean that the building was purchased but the land is leased, then yes for the building.

"Does not qualify for like kind due to not identifying 2nd property within the 45 days."

And, did not shelter this through an escrow agent? And, touched the money directly (got the proceeds in hand)? Like property and date range are only part of the picture; you can buy and then sell, or sell and then buy. But doing it yourself bypasses 1031 exchange, by definition.

"doesn’t technically own the property can they take depreciation?"

Do they have the use of it?

@Tracie415 Define land contract, please.

We don't have them in my part of the country.

I think it means title does not transfer unless and until the last payment is made.