What is a “like-kind” property?
With reference to real estate the term “like-kind” simply means that real property must be exchanged for real property. For example, a rental home may be exchanged for an apartment complex, a shopping center for an orchard or a ranch for a medical center. In the area of personal property exchanges the rules are more restrictive and an airplane must be exchanged for another airplane and not a boat even though they are both a means of transportation. In the area of personal property you should discuss your specific case with one of our legal or accounting staff. Keep in mind however, that whether real property or personal property it must be used as a business or income producing asset or held for investment to qualify. If you are not sure if your asset qualifies give us a call, there may be ways to structure the transaction to make them qualify.
