All real estate held for investment or business purposes may be considered "like kind" to any other real estate held for investment or business purposes. For example, raw land can be exchanged for an apartment building. The Exchanger must be able to demonstrate that both the property being sold (the "Relinquished Property") and the property being purchased (the "Replacement Property") is held for business or investment purposes.
Note that stocks, bonds, partnership or LLC interests, personal residences or inventory do not qualify as like kind property.
Greater Boston Exchange Company is owned and operated by attorneys with over 50 years combined experience in real estate and tax law. GBEC provides Qualified Intermediary services and consulting services to real estate owners and plans and structures Internal Revenue Code § 1031 tax-deferred exchanges.
The Exchanger assigns his interest in the P&S Agreement to the Qualified Intermediary. The Qualified Intermediary receives the net sale proceeds so that the Exchanger does not have actual or constructive receipt of the funds. The Qualified Intermediary holds the net sale proceeds until they are needed for the close of the Replacement Property.