What property qualifies as like-kind in a 1031 exchange?
For real estate, "like-kind" is very broad: almost any real property held for investment or business use can be exchanged for almost any other. Raw land, rentals, commercial buildings, and even certain long-term leasehold interests all qualify to be swapped for one another. What matters is that both properties are held for investment or business — not their type, quality, or location within the U.S.
You can exchange an apartment building for farmland, a duplex for a share of a triple-net retail property, or a single asset for several. It’s the "held for" purpose that governs, not the physical similarity.
What does NOT qualify: your home or a personal second home, property held mainly to resell (a flipper’s inventory), and — since 2017 — any non-real-estate property. Foreign real estate is not like-kind to U.S. real estate. Read the full like-kind definition.
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General education — not tax or legal advice. This explains how §1031 exchanges work in general terms and uses simplified assumptions. Rules and tax rates change and your situation is specific. Talk to a qualified CPA or tax attorney before you rely on any of it. See our full terms & legal notice.