1031 exchange properties include business or investment assets meeting IRS rules.
A 1031 exchange defers taxes on business properties, enabling reinvestment into income-producing assets. Ideal for relocation, retirement, or selling commercial and agricultural properties.
Investment properties qualify for a 1031 exchange if held for income or appreciation, including farms, rentals, apartments, and some vacation homes. This defers taxes, enabling reinvestment into income-generating assets.
The same taxpayer rule in a 1031 exchange requires the replacement property to match the relinquished property's ownership name or entity. Exceptions include Single Member LLCs, Revocable Trusts, or Drop & Swap strategies.
