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What property qualifies for like kind exchange?

What property qualifies for like kind exchange?

Qualified “Like-Kind” Property

  • Raw land or farmland for improved real estate.
  • Oil & gas royalties for a ranch.
  • Fee simple interest in real estate for a 30-year leasehold or a Tenant-in-Common interest in real estate.
  • Residential, Commercial, Industrial or Retail rental properties for any other real estate.

How long do you have to hold property in a 1031 exchange?

There’s no set minimum holding period for a property used in a 1031 exchange. The only requirement is that you owned the property with the intention to hold it as an investment.

What is a1031 exchange?

What is a 1031 or “Like-Kind” Exchange. A Section 1031 Exchange—named after the Internal Revenue Code section that established it—is a way in which the owner of US real estate can defer the capital gains tax owed on the sale of the property.

Are 1031 exchanges still allowed?

However, the current 1031 exchange process still has a time limit. There is a strict 45-day time limit. You must either close on or identify and report on the potential replacement property within 45 days of selling the original property. However, you’ll owe taxes on the sale of the old one.

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