What Type of Property Can I Swap in a 1031 Exchange?

A 1031 Exchange is not designed for switching personal property or moving between houses; a 1031 exchange is used for business or investment property. You can swap business or investment property for other business or investment property, such as rental property.

Remember that exchanged property must also be "like-kind," which means that you can only exchange real estate for real estate. You cannot swap other kinds of property (equipment, for example), for real estate using 1031. However, real estate is a broad category and you can usually swap any two types of real estate, or even two types of business, while still meeting the “like-kind” requirement.

Consider consulting your financial or legal advisor, or consulting with a professional qualified intermediary, to determine if your property qualifies under 1031 and the type of property you can swap your current property for.