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February 2nd, 2021 1:05 PM
What property qualifies for a Like-Kind Exchange?? Both the relinquished property you SELL and the replacement property you BUY must meet certain requirements.

Both properties must be held for use in a TRADE or BUSINESS or for INVESTMENT.
Property for personal use, like a primary residence, second home or vacation home, does not qualify for like-kind exchange treatment.

Both properties "Sale and Purchase" must be similar enough to qualify as like-kind. Quality or grade does not matter. Most real estate will be like-kind to other real estate.
Real property that is improved with a residential rental house is like-kind to vacant land. 

Section 1031 does not apply to exchanges of:
Inventory or stock trade/Stocks, bonds or notes/Other securities or debt/Partnership interests/Certificates of trust.
(see Part 3 on February 11th)

Posted by Richard Wayne Abatelli on February 2nd, 2021 1:05 PMPost a Comment

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