1031 Exchange Like Property

[Aaron Ziebart]

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.

[Justin F.]

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

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