What Qualifies as a 1031 Exchange (2024)

Any type of real property can be exchanged provided both the relinquished property and the replacement property are held for productive use in a trade or business or for investment. The term like-kind refers to the nature or character of the property not the specific type of property. Like-kind has a very broad and liberal definition and just about any real property will qualify except property held for sale or for personal use.

Properties may be located anywhere within the United States (50 states or District of Columbia). Income producing property in the U.S. Virgin Islands, Guam and the Northern Mariana Islands may qualify.
More than one property may be sold or acquired.
Foreign property can be exchanged for other foreign property held for investment or business use.

Frequently exchanged types of property include the following:

Farms, ranches and vacant land
Office buildings
Duplexes, single family rental properties and multi-family properties
Warehouses and industrial buildings
Shopping centers and retail properties
30-year leases, including options
Conservation easem*nts
Billboard, cell tower and utility easem*nts
Triple Net Lease (NNN) properties
Tenant-in-common interests (TICs)
Delaware Statutory Trusts (DSTs) information
Timber rights
Water rights
Co-ops
Air rights
Oil and gas royalties and mineral rights

Examples of property that does not qualify for tax-deferral treatment under Section 1031:

Personal use properties
Property held for sale, such as spec homes, building lots and “flips” Partnership interests
Stocks, including that of a Real Estate Investment Trust (REIT), and bonds
Mortgages and Notes
Goodwill
Tangible and intangible personal property (capital assets). The Tax Cuts & Jobs Act repealed personal property exchanges effective 1/1/2018.

1031 Resource Library

Frequently Asked Questions

1031 CORP. Advantage

The 1031 Exchange Team brings over three decades of combined exchange industry experience and has facilitated thousands of exchanges. Based in Collegeville, Pennsylvania and Bend, Oregon, our exchange experts are ready to answer your questions, guide the process, and facilitate your exchange.

Exceptional Security of Funds
Decades of Experience
Deep Industry Knowledge
Ongoing Support

What Our Clients Are Saying

"We felt very comfortable with the friendly and knowledgeable team. We could not have done it without your help. You made our transactions go so easy. Thank you!"

-- B. W., Princeville, OR

"You guys were great as usual. This is my second 1031 involving a total of eight properties and your service has been exceptional throughout."

-- J. T., Ardmore, PA

Need help? Contact our team to ask questions and find out how to get started.