Is it considered like-kind exchange and qualify for 1031 exchange
1031 Exchange? Can I exchange a business opportunity(franchise) after selling the residential income property
Does not exactly sound like "like-kind" property does it now?
Reply:if selling a rental property, you need to exchange for a rental property. That is where the "like-kind" comes in.
A franchise is not the same as a rental
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The initial answer is correct. A taxpayer cannot exchange a rental property for a business opportunity. They are clearly not "Like-Kind". However, the second comment is incorrect in its restrictive language. A rental property, assuming it has been held for "productive use in a trade or business", or for "investment" can be exchanged for almost any type of real estate. It is not limited to a rental property.
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