|
What type of property qualifies for a 1031 exchange? |
|
|
|
|
If the relinquished property was "held for investment" or "for use in a trade or business," and the replacement property will he held for similar use, you can effect a tax-deferred exchange. Virtually any real estate is like-kind to any other real estate (such as vacant land for a strip shopping center, an office building for an apartment building, etc.). Personal-use property (e.g., a principal or secondary residence) and property held for speculation, resale, or development does not qualify under Section 1031.
|
