Mr. and Mrs. Eyre own residential rental property that they would like to dispose of in a nontaxable exchange. Which of the following would not qualify as like-kind property?

Question

Quizplus · Accepted Answer

All of the options listed (commercial office building, undeveloped land, warehouse used to store transportation equipment) qualify as like-kind property under IRS rules for a 1031 exchange, which allows for the exchange of certain types of property without immediate tax implications. The key requirement is that the properties be held for productive use in a trade or business or for investment, not necessarily that they be of the same type.

Mr and Mrs