What is a "Like-Kind" Property?

Pursuant to IRC §1031, capital gain tax deferment requires the exchange of "like-kind" relinquished property for other "like-kind" replacement property. Contrary to the commonly held misconception that exchanged properties must be of the exact same type - for example, that bare land be exchanged for bare land or an income property be exchanged for another income property - the actual definition of "like-kind" is far more empowering in its flexibility. Any real property held for investment or real property used in a trade or business can be exchanged for any other real property held for investment or real property used in a trade or business.

POTENTIAL "LIKE-KIND" PROPERTY EXCHANGES AND BENEFITS:

This information is not intended to replace qualified legal and/or tax advisor's.
Each investment must be reviewed, each specific transaction is unique, your
legal and/or tax advisor are important to your strategy of 1031 Exchange.