Understanding like-kind is simpler than you think - in 1031 exchanges, like-kind refers to the nature of the investment, not the type of property
Key Insight: This means you can exchange a residential rental for commercial property, land for an apartment building, or any combination of US real property held for investment.
Explore which properties qualify as like-kind to each other. Click on any eligible property to see what it can be exchanged for.
Click on any property type below to see what it's compatible with
Separating fact from fiction about like-kind exchanges
You can exchange for ANY US real property held for investment or business use
ALL US real property held for investment is like-kind to each other
Yes! DST interests qualify as like-kind real property
No longer allowed since 2017 tax law changes
Must meet specific rental/personal use thresholds
Personal property no longer qualifies after 2017 tax law changes
See what's allowed and what's not with actual exchange scenarios
ALLOWED: This exchange is ALLOWED. You can exchange residential investment property for commercial property. Both are US real property held for investment.
ALLOWED: This exchange is ALLOWED. Improved property (apartment building) can be exchanged for unimproved property (raw land). Both are like-kind real estate.
NOT ALLOWED: This exchange is NOT ALLOWED. The replacement property must be held for investment or business use. You cannot exchange into a property you plan to use as your personal residence.
ALLOWED: This exchange is ALLOWED. DST interests qualify as real property ownership. This is a common exit strategy for investors who want to eliminate management responsibilities.
NOT ALLOWED: This exchange is NOT ALLOWED. Since 2018, US real property is not like-kind to foreign real property. Your replacement must be US-based.
ALLOWED: This exchange is ALLOWED. You can exchange one property for multiple properties of different types. As long as total value is equal or greater, it qualifies.
The Tax Cuts and Jobs Act of 2017 made significant changes to Section 1031, including eliminating personal property exchanges and clarifying that foreign real property is not like-kind to US real property. All guidance on this page reflects current law (as of 2026).
Now that you understand what qualifies as like-kind property, take the next step. Connect with qualified professionals who can guide you through the exchange process, or use our timeline calculator to plan your deadlines.
Connect with qualified professionals who can guide you through your like-kind exchange