What is like-kind exchange property?
• All real property is “like-kind” with all other real property. “Like-kind” refers to how the property is held by the investor, not the type or character of property. The Exchange Party must have held the Relinquished Property for investment, or for “productive use in their trade or business”, and intend to do the same with the Replacement Property. The following are examples of “like-kind” property: • Residential for commerical • Bank building for swamp land • Bare land for rental residential • Fee simple interest for 30-year leasehold • Single-family rental for multi-family rental • Non-income producing for income producing • Rental mountain cabin for a dentist office in which the Exchange Party intends to practice • If the Exchange Party is exchanging personal property, the rules are far more restrictive. Definitions of what is considered real property and personal property can vary from state to state. It is essential to consult with a tax advisor when structuring personal propert
