Like-Kind Property
In a 1031 exchange you can exchange any real property for any other real
property within the United States or its possessions if said properties are held
for productive use in trade or business or for investment purposes. Examples of
like-kind property include apartments, commercial, condos, duplexes, raw land
and rental homes*. As used in IRC 1031(a), the words "like-kind" mean similar in
nature or character, notwithstanding differences in grade or quality. One kind
of class of property may not, under that section, be exchanged for property of a
different kind or class. Examples of qualified like-kind exchanges:
Examples of non like-kind properties include primary residences, stocks and
bonds, notes, partnership interests, developed lots held primarily for sale and
property to be resold immediately after initial purchase or completion of
improvements.
* Qualification for Section 1031 exchanges depends upon the extent of personal
use.