Like-Kind Property

In a 1031 Like-Kind exchange you can exchange any real property for any other real property within the United States or its possessions if said properties are held for productive use in trade or business or for investment purposes. Examples of 1031 like-kind exchange property include apartments, commercial, condos, duplexes, raw land and rental homes*. As used in IRC 1031(a), the words "like-kind" mean similar in nature or character, notwithstanding differences in grade or quality. One kind of class of property may not, under that section, be exchanged for property of a different kind or class. Examples of qualified 1031 like-kind properties and like-kind exchanges:

• apartment building for farm/ranch
• office building for hotel
• raw land for retail space
• unimproved property for commercial property
• airplane for airplane

Examples of non like-kind properties include primary residences, stocks and bonds, notes, partnership interests, developed lots held primarily for sale and property to be resold immediately after initial purchase or completion of improvements.

• Qualification for Section 1031 exchanges depends upon the extent of personal use.

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Felice “Lisa” K. Fletcher, Coldwell Banker James C. Otton Real Estate, Inc., 9626 2nd Ave., P.O. Box 68, Stone Harbor, NJ 08247-1955
Office: (800) 708-5789 - (609) 368-4766 - Cell: (215) 421-1704 - FAX: (609) 368-4533 - Email:  lisa@lfletcher.com

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