Common examples include hotels, restaurants, nursing homes and convenience stores. Depreciable personal property is not like-kind with real property but it does qualify for 1031 transactions. Investment real estate falls into a broad like-kind category where all investment real estate is like-kind with all other investment real estate. This is not true of personal property. It is very specific.
For example, a commercial dishwashing machine would not be considered like-kind with a gasoline pump. A cash register system would not be like-kind with built-in medical equipment in an operating room. There is more pre-planning needed in this type of transaction than most other exchanges. The real estate values must be separated from the personal property. Then the personal property must be broken down into its separate like-kind categories. Then the groups being sold must be matched up with like-kind property groups being acquired to get total gain deferral.
Our staff understands the issues around multi-asset exchanges. By taking you through a series of pre-planning steps, we can help ensure that you will be able to maximize the benefit of this type of transaction.
