In an exchange, one must exchange Like-Kind Property, so what is Like-Kind Property?
Any real property held for productive use in a trade or business or for investment, whether improved or unimproved, is considered like-kind real property. Examples of like-kind real property include:
• 2 to 4 Units for 5 Unit or more
• Duplex or more units, for a retail property
• Single family rental for a multi-family apartment
• Unimproved property for improved property
• Vacant land for a commercial building
• Industrial property for rental vacation property in a resort area.