Last year, the Tax Cuts & Jobs Act went into effect and significantly narrowed the types of property eligible for 1031 exchange. Specifically, this Act excluded personal property outright and left only real property eligible for 1031 treatment. Within the realm of real estate, the like-kind definition is quite broad. In this article, we are going to talk about the various types of real property that qualify for 1031 exchange treatment.
Like-Kind Real Property
When it comes to 1031 exchanges, the term “like-kind” property generally refers to the character or nature of the property – rather than its quality or grade. All real estate involved in an exchange must be held for investment or for productive use in a trade or business. Here are some examples of like-kind real estate that can be exchanged in a 1031 transaction:
Real Property (both improved or unimproved)
A Duplex for a Commercial Property
An Apartment Building used for Single-Family Rentals
Fee for a Leasehold Interest
Rental Resort Property
Commercial Real Estate Exchanges
At Commercial Partners Exchange Company, we work with investors of all sizes on their 1031 exchanges of real property. With twenty years of experience at our backs, we can walk you through the entire like-kind exchange process and keep you informed every step of the way. Contact us today to learn more about our 1031 exchange services and start saving money on your real estate transaction! You can find us at our office in downtown Minneapolis. We also work with clients throughout the United States.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
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