What properties qualify for a 1031 Exchange?

Any property held for investment or for productive use in a trade or business by a U.S. taxpayer potentially qualifies for a 1031 Exchange. This can include raw land, condominiums, multi-family buildings, commercial buildings, aircraft, heavy equipment or many types of tangible property that are held for investment or for productive use in a trade or business. As an alternative to sole ownership of real estate, a 1031 Exchangor can invest in a large commercial property along with other unrelated investors, not as a partner, but as an individual co-tenant owner. This structure of ownership is referred to as an Undivided Tenants-in-Common Interest, or TIC. The TIC product is designed to accommodate the average Exchangor, allowing them to receive part ownership in an institutional-type property with a minimum investment that would normally be beyond their means if they were to try to purchase it alone. TIC Replacement Properties can provide the co-owners with investment grade tenants on a ... more