Like-kind property
Like-kind property is real estate held for investment or business use that qualifies as a replacement in a tax-deferred exchange.
Like-kind property is real estate held for investment or business use that qualifies as a replacement in a tax-deferred exchange. For real estate, the test looks at the nature and use of the property, not its grade or quality.
Why it matters to a Las Vegas investor
When planning an exchange, the question is whether the replacement meets the rules, not whether it looks similar. A replacement in Las Vegas still has to fit your goals, so selection and rule-checking go together.
Read more from Fernwood
- 1031 Exchange Replacement Property Strategy
- A Safer 1031 Exchange Process
- Identify 1031 Replacement Property in Las Vegas
Related terms
Questions about Like-kind property
Does a replacement property have to be the same type?
Real property held for investment can generally be exchanged for other real property held for investment. Confirm your plan with a tax professional.
Is a personal residence like-kind?
A home used as a personal residence is generally not held for investment, so it does not fit the usual rule. Ask a tax professional.