In a 1031 exchange, the IRS requires both your relinquished and replacement property to be “like-kind” to qualify for tax deferral. The like-kind requirement is one of the most important rules in a 1031 exchange, yet it’s also one of the most commonly misunderstood. Many investors are unclear on what actually qualifies as like-kind property and what types of assets do not meet the requirement, which can put an exchange at risk.
Watch our latest video as Edward Fernandez breaks down what like-kind really means, what qualifies and what doesn’t, and how Delaware Statutory Trusts (DSTs) can be used as a like-kind replacement property in a 1031 exchange.
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