What Can (and Can't) Be Traded in a 1031 Exchange?

Although the provisions of Section 1031 have been around for a long time, there are still investors who are not familiar with the tax savings offered by this powerful piece of tax code. And even for those investors who have heard of a 1031 exchange, their knowledge rarely goes beyond the basics.

In fact, many investors believe (wrongly) that only real property can be exchanged in these transactions. This is not true. While there are some business or investment interests that are excluded from section 1031 qualification, there are many types of “property” that can be exchanged.

Understanding what can (and can’t) be traded opens up a world of possibilities when it comes to deferring capital gains taxes. Just remember that the two properties exchanged must be “like kind.”

Property Eligible for 1031 Consideration

Businesses
Farms
Shopping malls/strip malls
Golf courses & practice ranges
Trailer parks
Self-storage facilities
Convenience stores
Land
Commercial buildings
Gas stations
Apartments
Hotels and motels
Hospital equipment
Artwork
Oil, gas and mineral rights
Water and ditch rights
Parking lots
Condominiums
Improvements/build to suit
Develop land already owned
Gold, silver and coins
Timberland
Conservation easements
Aircraft
Livestock
Rental properties
Collectibles (gems, metals, cars, etc.)
Student housing

Property Not Eligible for a 1031 Exchange

Primary residence
Stocks, bonds or notes
Debt
Partnership interests
Inventory

To find out how we can help you find and close on your next 1031 exchange property or to learn more about the exchange process and our qualified intermediary services, please visit our website.