What are the rules regarding the exchange of like-kind properties? May I exchange a vacant parcel of land for an improved property or a rental house for a multiple-unit building?
If properties are of the same nature or character, regardless of whether or not they differ in grade or quality, they are like-kind properties. The two properties must be of the same type, disregarding any improvements made. To clarify, two residential pieces of real estate are like-kind towards one another. A residential piece of real estate and a car would not be.
Related Questions
- What are the rules regarding the exchange of like-kind properties? May I exchange a vacant parcel of land for an improved property or a rental house for a multiple-unit building?
- If the current boundaries of a land parcel identified by land registration and property assessment are not identical, how will this be represented in the parcel fabric?
- When I exchange 1031 properties, should I give carryback financing to the purchaser of my relinquished property?
