Definition
Like-kind exchange means any real property can be exchanged for any other real property in a 1031 exchange. The intent is to defer taxes indefinitely.
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Find my pathAbout this term
Post-2018, like-kind for 1031 purposes means any real property can be exchanged for any other real property (apartment for land, commercial for residential). The intent is to defer taxes on investment property exchanges. Strict timelines and qualified intermediary requirements must be met.
Pro Tip
Ensure replacement property is identified and acquired within required timelines.
Example
Exchanging a rental apartment for farmland, a commercial building for a residential duplex, or developed land for raw land all qualify