What is Like-Kind?
For 1031 exchange purposes, like-kind refers to the nature and character of the property, not its grade or quality. The property must be held for productive use in a trade, business, or investment.
Qualifying Property Types
- Income-producing real estate (apartments, offices, retail)
- Vacant land held for investment or development
- Industrial properties and warehouses
- Single-family and multifamily residential properties
Non-Qualifying Properties
- Primary residences
- Inventory or dealer properties
- Foreign real estate
- Partnership interests