1030 from empty lot to SFR possible?

[Garen T.]

For the past 2-3 years, I've been under the impression that if I wanted to do a 1031, it had to be for Like-Like property. And that if I wanted to move the profit from a residential building lot, with no home on it, to a finished or under construction home, that I would it would not fit the like-like rule.

However, I just got off the phone with the person who helped me with the last 1031 I did, and she indicated that as long as it was real property, purchased for investment only, that I could use that as a valid 1031. 

Does anyone have thoughts/knowledge on this?

Thanks

Garen

[Ashish Acharya]

Originally posted by @Garen T.:

For the past 2-3 years, I've been under the impression that if I wanted to do a 1031, it had to be for Like-Like property. And that if I wanted to move the profit from a residential building lot, with no home on it, to a finished or under construction home, that I would it would not fit the like-like rule.

However, I just got off the phone with the person who helped me with the last 1031 I did, and she indicated that as long as it was real property, purchased for investment only, that I could use that as a valid 1031. 

Does anyone have thoughts/knowledge on this?

Thanks

Garen

 The term like-kind refers to the nature or character of the property and not to its grade or quality.  Real property includes rental buildings, office and store buildings, manufacturing plants, warehouses, and land. Whether the real property is improved or unimproved does not matter. Consequently, unimproved land can be exchanged for an apartment house and vice-versa. 

Like-kind exchanges can include business for business, business for investment, investment for business, or investment for investment property.