06/15/2026
One of the more common points of confusion in a 1031 exchange is what actually qualifies as like-kind property.
Under IRS guidelines, most real estate held for investment or business purposes meets the standard, even when asset types differ. An apartment building can be exchanged for industrial property, retail space, or certain DST investments.
The like-kind requirement is broader than many assume. What matters is how the property is held and used, not whether it resembles the asset being relinquished.