Like-kind is one of the most important rules you need to follow when conducting a 1031 exchange of real property. All property involved in your exchange needs to be like-kind. But like-kind can be a tricky thing to nail down in certain exchanges. In this article, we will explain the intricacies of “like-kind” in a 1031 exchange of real estate.
Real Estate Exchanges
When it comes to 1031 exchanges of real property, the IRS has defined “like-kind” very broadly. In general, most real estate is considered like-kind to most other real estate. It doesn’t matter where they are located (so long as they’re in the US), or their respective industries. You can exchange out of an apartment building and into a hotel building, for example.
When in doubt, it’s always a good idea to consult with a qualified intermediary about the details of your exchange and whether your property qualifies as like-kind or not.
Minneapolis 1031 Exchange Company
The qualified intermediaries at CPEC1031, LLC have decades of experience helping taxpayers in the Twin Cities, greater Minnesota, and across the country with their like-kind exchanges of real property. Contact us today at our downtown Minneapolis office to set up a time to chat with one of our skilled 1031 exchange accommodators.
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
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