Section 1031 Like-Kind Exchanges

For like-kind exchanges started on or before December 31, 2017: Under IRC 1031 (like-kind exchanges), no gain or loss is recognized if property which is held for productive use in a trade or business or for investment is exchanged for property of like-kind held for use in a trade or business or for investment. The words like-kind reference the nature and character of the property and not to its grade or quality. Examples that qualify as like-kind include: A city duplex for farmland, improved land for unimproved land, city real estate for a farm or ranch, or investment property NOT INVOLVING REAL PROPERTY and investment property of like-kind . Listed below are some types of property that do not qualify for like-kind exchange:

Stock in trade or other property held primarily for sale

Stock, bonds or notes

Other securities or evidence of indebtedness or interest

Interest in a partnership

Certificates of trust or beneficial interest

Chooses in action (A right to property rather than actual possession).