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Real property

Also called: real estate · realty

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PLAIN-ENGLISH DEFINITION

Land, buildings and certain other interests treated as real property under federal Section 1031 rules.

What it means in practice.

After the 2017 tax-law changes, Section 1031 generally applies only to real property. Treasury regulations define what is treated as real property for this purpose.

Why it matters.

A transaction involving business assets should separate qualifying real property from nonqualifying personal or intangible assets.

Additional notes.

After the 2017 tax-law changes, Section 1031 generally applies only to real property. Treasury regulations define what is treated as real property for this purpose.

PRIMARY / REFERENCE SOURCES

Read the source material.

irs.gov ↗irs.gov/businesses/small-businesses-self-employed/like-kind-exchanges-real-estate-tax-tipsirs.gov ↗irs.gov/publications/p544
CONNECTED LANGUAGE

Related definitions.

EligibilityPersonal propertyProperty that is not real property, such as many items of equipment, machinery, vehicles and other movable assets.Core 1031Like-kind propertyProperty of the same nature or character for Section 1031 purposes; for real estate, the concept is broader than “same property type.”
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