Like-Kind Property in a 1031 Exchange: What Actually Qualifies
Like-kind property in a 1031 exchange does not mean "the same type of property." It means any United States real property held for investment or business use — and all of it is like-kind to all the rest of it.
This is the #1 misconception in the entire 1031 world, and it stops investors from making their best move: leaving a tired asset class for a better one.
What Exchanges Into What
The regulation (Treas. Reg. 1.1031(a)-1(b)) construes like-kind broadly for real property. The real limits: since the 2017 tax law, 1031 covers real property only (no equipment, no crypto), it must be held for investment or business use — not personal use — and foreign property doesn't pair with US property (IRC 1031(h)).
- Rental houses → industrial. Qualifies.
- Apartment building → office, retail, or warehouses. Qualifies.
- Raw land → cash-flowing small bay industrial. Qualifies.
- Farm or ranch → multi-tenant flex space. Qualifies.
Why This Matters
Whatever you're selling — duplexes, a strip center, farmland — the exchange rules put multi-tenant Texas industrial fully on your menu. The asset class you exit has nothing to do with the one you enter.
Current Replacement Property Inventory
The Brown Portfolio
Houston, TX · Small Bay Industrial
$7,760,000
57,565 SF · 100% occupied
East Houston Shallow Bay Portfolio
Houston, TX · Small Bay Industrial
Contact for Pricing
· 100% occupied
Highway 30 Business Park
College Station, TX · Small Bay Industrial
Contact for Pricing
186,225 SF · 94.5% occupied
Common Questions
Can I exchange one property for several?
Yes — and vice versa. One sale can fund multiple replacements, subject to the identification rules.
Does a vacation home qualify?
Only if it's genuinely held for investment. Personal-use property fails the test — there's a 24-month rental safe harbor (Rev. Proc. 2008-16) that cleans this up.
Can I exchange into property I'll improve?
Yes — improvement (build-to-suit) exchanges exist, with extra structure. The 180-day clock still rules everything.
Ready to Deploy Your 1031 Capital?
Call us at 717-553-6888 or send an inquiry. We coordinate the exchange from identification to closing.
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