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What type of property can be exchanged under Section 1031?

exchanged Property section type
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What type of property can be exchanged under Section 1031?

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Qualifying use property is property that has been or will be held for income production (rental), investment or used in a trade or business. Assuming the property satisfies the qualified use test, it must also satisfy the “like-kind” test. Real property is “like-kind” to real property, so as long as you are exchanging real property for real property it will qualify as “like-kind” for 1031 exchange treatment. The types of real property eligible for 1031 exchange treatment include: Raw land; Single-family homes; Hotels; Multifamily dwellings; Factories; Commercial office buildings; Shopping centers; Farmland; Leases of 30 years or more; Quarries; and, oil fields. In general, any type of real estate may be traded for another type of real estate as long as it satisfies the qualified use test. Like-kind rules for personal property are more restrictive than those for real property. Aircraft, automobiles, trucks, office equipment, furniture, machinery, computers, musical instruments, billboar

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Qualifying use property is property that has been or will be held for income production (rental), investment or used in a trade or business. Your personal residence and vacation home are not qualifying use property and do not qualify for 1031 exchange treatment, although they may qualify for Section 121 Exemption treatment.

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