The replacement propery in a 1031 exchange that is similar in classification or characteristics to the relinquished property. Like kind property cannot be a primary residence or a second home and must be for business or investment purposes.
The properties involved in an exchange must be similar in nature or characteristics, that is both the property sold and the property being acquired must be used for investment or business / rental purposes.
Refers to the nature of the property the Exchanger gives up or receives in the exchange, such as real property for real property. It does not have to be similar in use such as raw land for raw land. The land could be exchanged for any other real property that will be used in a trade of business or held for investment.
Any real property for any other real property if said property(ies) are held for productive use in trade or business or for investment purposes.
Property eligible for a deferred exchange. Like kind property is similar in use. For example, a property with a rental house on it may be exchanged for an apartment building.
Refers to the nature or quality of the property you give up or receive in the exchange, such as real property for real property. Real property does not have to be similar in use such as raw land for raw land. Raw land may be exchanged for any other real property that will be used in a trade or business or held for investment. Real property located in the United States and real property located outside of the United States is not like kind. Personal Property must be either the same General Asset Class or Product Class.