What Property Qualifies as 'Like-Kind'?

Broader than most investors expect — but real estate only.

Real property for real property

Most U.S. investment or business real estate is like-kind to other U.S. investment real estate. You can exchange an apartment building for raw land, or a rental house for a strip mall.

What no longer qualifies

Since the 2018 tax law, personal property (equipment, vehicles) no longer qualifies for 1031 treatment — it's real estate only now.

Held for investment or business

The property you sell and the one you buy must both be held for investment or productive use in a trade or business — not primarily for personal use or resale.

Frequently asked questions

Can I exchange land for a building?

Yes — most U.S. investment real estate is like-kind to other investment real estate.

Does personal property qualify for a 1031?

No. Since 2018, only real property qualifies.

Sources

Educational information and estimates only. Not tax advice. Tax rules change and vary by situation; consult a qualified tax professional before acting.

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