Question

Does the following currently qualify as like-kind exchanges under § 1031?

1. Business land for rental house (held for investment).

Answer 1

Yes, it qualifies the like-kind exchanges under 1031 exchange. As 1031 exchange talks about exchange of property without payment of capital gain at the same time. Thus 1031 exchange facilitates the deferment of capital gain tax at the time of sale of property.

Some examples of commercial properties eligible for a 1031 exchange include (but are not limited to):

• Industrial properties
• Warehouse properties
• Multi-family properties including high-rise or apartment complexes
• NNN properties
• Delaware Statutory Trusts (DSTs)
• Office properties
• Retail properties
• Land used for speculation/Development
• Hotels/Motels
• Storage Facilities
• Medical office/Retail
• Special purpose (churches, government buildings, etc.)