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For example that means an apartment can be exchanged for an office . Like - kind simply means replacing one type of investment with a similar type of investment. The property being disposed and the property being . Nonrecognition of gain or loss from exchanges solely in kind. No immediate tax obligation and potential avoidance.

Like - kind ” means I must exchange the same type of property, such as an apartment building, for another apartment building. Meaning it is easiest to sell and purchase a similar business with similar assets. The IRS considers any investment property as like kind.

Jump to Identify Like - Kind Property - A “ like - kind ” property is defined as two assets considered. This means that you must own and operate both properties for one of . Relinquished properties and like - kind replacement properties that are part of a single . No gain or loss shall be recognized on the .

You can identify as many as three like - kind properties to buy, or as many as you . Generally, a rough rule of thumb is a holding period . Property must be “ like kind ” which is very broadly interpreted and means that both . In the case of real estate, this means a legal description, street address, . While the definition of “like kind ” is stricter when it comes to personal property, investors may still take advantage of tax deferred treatment in an IRS Section . By definition , your personal residence is not property held for investment or for. Tax Code allows taxpayers to exchange. A proper purpose means the property was generating income through rent or inventory.

The exchange takes place for like - kind replacement property. The bill preserves like - kind exchanges of real property in its current form. The definition of like - kind real property remains broad and liberal and any real property . Constructive receipt. Gain deferred in a like - kind exchange is tax-deferre which means.

To qualify as a like - kind exchange , property exchanges must be done in. Investment purpose defined as real estate, even if unproductive, held by a non- dealer .

A tax deferred exchange is a simple strategy that involves “exchanging” one “ like kind ”. Like - Kind ” is defined as any property that is considered real estate in the US states. The relinquished property . You can sell an apartment building in Maine, and replace it with a single-.