Types & Qualifying Exchanges
There are numerous types of exchanges; here are three (3) types of basic 1031 tax-deferred exchanges:
• Simultaneous Exchanges
• Deferred Exchanges Safe Harbor
• Reverse Exchanges
To qualify as a 1031 exchange, the property being sold and the new replacement property must both be held for investment purposes or for productive use in a trade or a business. They must be "like-kind" properties.
The following types of real estate swaps are examples of a qualified exchange of "like-kind" property:
* An office in exchange for a shopping center
* A shopping center in exchange for land
* Land in exchange for an industrial building
* An apartment building in exchange for an industrial building
* A single-family rental in exchange for a tenants in common (TIC) property
