like-kind property
Any two assets or properties that are considered to be the same type, and thus that can be exchanged tax-free in a 1031 exchange.
For more information on 1031 exchanges and what qualifies as like-kind property, see wikipedia.
Definition from Nolo’s Plain-English Law Dictionary
Property that is similar to property being sold in a 1031 exchange. Property must be like-kind to be eligible for an exchange, but that does not mean it need be similar. Properties must simply be of the same nature or character (meaning both are investment or business properties), but not the same grade or quality.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:19 pm
