Like-kind property
Also called: like kind · like-kind real estate
Property of the same nature or character for Section 1031 purposes; for real estate, the concept is broader than “same property type.”
What it means in practice.
Qualifying U.S. real properties can generally be like kind even if one is improved and another is unimproved, or if they have different uses or quality. U.S. real property is not like kind to real property outside the United States.
Why it matters.
Investors often assume apartment-for-apartment is required. Federal real-property like-kind treatment is generally broader.
Additional notes.
Qualifying U.S. real properties can generally be like kind even if one is improved and another is unimproved, or if they have different uses or quality. U.S. real property is not like kind to real property outside the United States.
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