Types of Properties that Qualify

The investor (Exchanger) must sell property that is held for income or investment purposes and acquire "like-kind" replacement property that will be held for income or investment purposes. The term "like-kind" is sometimes misinterpreted to mean "identical" - but this is not the case. In fact any real property can generally be exchanged for other real property.

Examples of qualifying exchange properties include:

• Bare land exchanged for Rental property
  
• A single family rental exchanged for Industrial property
  
• A rental cabin in Taos exchanged for a doctor's own office in San Diego
  
• Bare land exchanged for a Tenancy-In-Common (TIC) interest in a shopping center

As you can see, there are really few limitations on what constitutes "like kind".

Some examples of properties which do not qualify for exchange purposes include:

• Bonds, Stocks (including REITs), and Notes
  
• Interests in a Partnership
  
• Trust Deeds
  
• Stock in Trade (including Real Estate held as Stock in Trade)