Question

Describe the like-kind property requirements for real property for purposes of qualifying for a like-kind exchange. Explain whether land held for investment by a corporation will qualify as like-kind property with land held by an individual for personal use.

Answer 1

Likr kind property refers to two assets that are considered to be of the same type. The two assets need to be of same type but it is not necessary that they are of same quality.

The like kind property must be used in bussiness or as an investment. Property like primary residences are excluded because these are by default use for personal purpose. The property must also be within the united states to qualify.

Land held for investment by a corporation will not qualify as like-kind property with land held by an individual for personal use because land used for personal purposes does not qualify as a like kind exchange.