[startupcfo]

On the exam, I’m sure there’s gonna be a question where someone exchanges an empty parking lot for warehouse/farm or someone exchanges a detached single-family residence for an office building.

I know IRC 1031 guides likekind exchanges, but I’m having trouble finding a definitive list in the primary source of what would be allowed. Thanks.

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[Anonymous]

Here's some items that NEVER qualify as like-kind:

1. Inventory for inventory
2. Stock for stock, exchanging partnership interests, or really any other securities.

If you can get these down you will be able to narrow your answers choices down every time. If you are exchanging real property used in trade in business for other real property used in trade or business OR held for investment it will almost always qualify as like-kind.

[PharmBoy]

You're not going to find a definitive list somewhere because there will always be some gray area that hasn't been determined by case law yet.

Real estate is like kind to real estate as long as both properties are located in the United States and used in the business or for investment. There may be some exceptions to that rule, but I doubt they would test that level of detail on the CPA exam or bar exam.

Personal property is more strict, so the CEO's company car and a delivery van are not like kind.

[Author]

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