What Property Qualifies For A Like-Kind Exchange?

The following are examples of qualified “like-kind” real property exchanges:

  • Raw land for rental property
  • Single-family rental for multi-family rental
  • Retail space for motel/hotel
  • Farms/ranch for a golf course
  • 30-year leasehold interest for fee simple interest
  • Non-income producing raw land for income-producing rental property

Both the relinquished property you sell and the replacement property you buy must meet certain requirements.

Both properties must be similar enough to qualify as “like-kind.” Like-kind property is property of the same nature, character or class. Quality or grade does not matter. Most real estate will be like-kind to other real estate.

WHERE TO START?

© UTB 1031

*Rates may change at any time. Contact UTB 1031 for current rates.

**Based on 0.75% APY (Annual Percentage Yield) on an interest rate of 0.75% compounded monthly for a period of 180 days

$   UTB 1031 as a qualified intermediary does not give tax or legal advice. The information contained herein should not be relied upon as a substitute for tax or legal advice obtained from your competent tax and/or legal advisor.