Are leasehold interests considered like-kind?
A leasehold interest with a remaining term of 30 years or more is considered “like-kind” property to a fee interest in any other real estate held for productive use in a trade or business or for investment. If a leasehold interest has an unexpired term of less than 30 years, it is not treated as a qualifying ยง1031 property. However, if the lease provides for optional renewal periods (which must be at or near market terms), these periods can used to count toward whether the leasehold has 30 years or more remaining.
