Monday, December 11, 2023
The property sold (Relinquished Property) in a 1031 Exchange must be “Like-Kind” to the property purchased (Replacement Property).
In real property 1031 Exchanges, all real property is “Like-kind” to other real property. This mean that a shopping center can be “like-Kind” to raw land, an office building can be “Like-Kind” to an investment residence, etc.
In personal property, the “Like-Kind” requirements are much more restrictive. For Example, a car is not “Like-Kind” to a truck. In personal property Exchanges, property must also be “Like-Class”.
