The fundamental advantages of a tax deferred exchange may be utilized to diversify, consolidate or leverage your investment portfolio. With respect to real property, the broad definition of "like kind" provides investors with numerous options to accomplish their investment goals.
Properties that qualify for IRC Section 1031 treatment
IRC Section 1031 provides that to qualify for tax deferred treatment, the relinquished property must be exchanged for replacement property that is like kind. Like kind means similar in nature and character notwithstanding differences in grade or quality. The fact that any real estate involved is improved or unimproved is not material for that fact relates only to the grade or quality of the property and not its kind or class. As such, raw land held for in |
