CAN A LEASEHOLD PROPERTY BE EXCHANGED?
Special provisions apply to leasehold property. While owners of leasehold property do not possess a fee simple interest, a leasehold of 30 years or longer (including optional renewal periods) is deemed to be of like-kind to fee simple property. Leaseholds of less than 30 years duration may only be traded for other leasehold property with remaining lease terms of less than 30 years. Again, remember that optional renewal periods are included in determining whether a lease for a period of years is of like-kind.
