Like-kind is broader than most investors think.
For real property, like-kind is a wide category. An apartment building can be exchanged for raw land, a retail strip for a warehouse, a rental condo for a share of a larger asset.
What counts as like-kind
Grade and quality do not matter
Real property held for investment is like-kind to other real property held for investment. The type of asset can change completely.
Intent is what is tested
The question is whether you held the property for investment or business use — not what kind of building sat on it.
Real property only since 2018
Equipment, vehicles and other personal property no longer qualify. Some fixtures are a closer call than they look.
Three steps, and we carry most of them
Call before you close
We confirm an exchange fits, map the deadlines against your timeline, and put the exchange agreement in place before the sale closes.
We hold the proceeds
Funds go from the closing table to us, never to you. That is what keeps the deferral intact.
You buy, we close it out
You identify and negotiate the replacement property. We handle the documentation, the funding and the reporting trail.
1031 Specialists
Investors routinely rule themselves out of an exchange because they assume they have to buy the same type of property they sold. They almost never do. The more useful question is whether the holding intent on both sides supports the exchange.
We are a qualified intermediary for IRC Section 1031 tax-deferred exchanges, facilitating exchanges for real estate investors in all fifty states. We handle the exchange agreement, the identification and closing deadlines, and the custody of exchange funds. Every exchange includes unlimited tax optimization consulting, audit protection and an attorney guarantee, on a simple flat fee you pay at close.
What counts as like-kind, answered
Can I exchange a rental for raw land?
Yes. For real property, like-kind is broad. Type, grade and quality do not have to match — only the investment or business-use character.
Does personal property qualify?
Not since the 2017 tax law. Section 1031 now applies to real property only. Fixtures can be a closer question than they first appear.
What about a property I flip?
Property held primarily for resale is inventory, not investment property, and generally does not qualify. Holding period and intent both matter.
Talk to someone before the clock starts
Reach me directly, or call the main line and ask for anyone on the exchange team.
Main line
(631) 438-1031General email
info@1031specialists.comMailing address
30262 Crown Valley Pkwy, Suite B 464Laguna Niguel, CA 92677
The information on this page is general in nature and is not tax or legal advice. 1031 Specialists is a qualified intermediary, not a law firm, accounting firm or investment adviser. Consult your own tax and legal advisors about your circumstances before entering into an exchange.