What property can be exchanged?

Exchanges can be performed with property that is considered “like-kind” to other properties. Both the relinquished (sale) property and the replacement (purchased) property must meet certain requirements. Those include:

• Both properties must be held for use in a trade or business OR for investment.
• Like-kind property is property of the same nature, character or class regardless of quality.

Eligible property may include:

• Vacant or Farm Land
• Commercial, Industrial or Retail real estate
• 30 Year Leasehold or Tenants In Common Interest
• Delaware Statutory Trust (DST)

Items that DO NOT qualify for 1031 Tax Deferred status

• Property used primarily for personal use, such as a primary residence or a second/vacation home.
• Property within the United States cannot be exchanged with property outside of the United States.
• Improvements that are conveyed without land
• Personal property such as Stocks, Bonds or Securities