I have a client that has an investment property that is a duplex and they are selling that duplex and want to do a 1031 Exchange for a multifamily apartment building with 26 units. Would this exchange qualify? The IRS website says it is possible for a "like-kind" exchange. Like-kind property is property of the same nature, character or class. It doesn't sound like it would be, but I have some connections that say it can be done. Let me know what you all think.

YES - "like-kind" is broader than you are thinking.

*This post does not constitute tax advice, nor financial advice, speak with a professional*

It works have your client work with an accountant who may want to connect with the exchange folks. I know mine does.

Thank you, I will work with my client and let them know that it may be possible to defer paying taxes with this exchange.

Yes it qualifies.....real estate held for investment....it could be a strip center, warehouse, whatever.

@Dave Foster can walk your client thru it, he knows more about 1031’s than90% of CPA’s. 

@Aaron Ziebart , I'll second third and fourth everyone here.  Property that qualifies is property that has been purchased with the intent of holding for productive use in business, for trade, or for investment.  It is not the type of property that matters it is the use.  Any kind of investment property for any other type of investment property.  There's some other restrictive requirements to pay attention to though.  And valuation is key.   But if they're going from a duplex to a MF building they're probably fine on that one.