Asheville Homes and LAND!- The Keep In Touch Blog


1031 Like-Kind Exchange: One Time a Farm can Equal a Condo. . .

 The other day, as I mentioned in an earlier poston my BLOG,
a novice “Green”  investor and I were talking about the pros and cons of the 1031 Like Kind Exchange. (

Good info on the 1031 is available at NAR:

She had heard "by the grapevine" and mistakenly believed
that she absolutely had to acquire property exactly like
her relinquished property.

I discovered this as we started to scope out her property options,
and we talked about what they could be. She confessed that she had been distressed about how she was going to find an exact match.

She really was quite thrilled , in fact she gave me a big "thumbs up!" when I commented that a wide variety of properties
can be considered Like-Kind.

Contrary to her concerns, investors DO have a latitude and even an intriguing perspective from which to make choices under the 1031 Exchange Plan.  And that could turn out to be a "good-thing", especially if you are interested in ECO-friendly investing here in the Greater Asheville area. “Think of it this way,” I assured this client,  “Like-Kind does NOT refer to the nature, character, or type of property. … it’s all about the intended use of the property.”  

Here are some examples:

* A professional office in Manhattan for a mountain cabin with Views or perhaps  land for sale that could be leased back to a farmer or a portion of which could be dedicated to a conservation easement in a town near Asheville.

* A condo in California for unimproved Land with a waterfall in the Asheville area

* A single family rental in Chicago for multi family rental in West Asheville

* Non income providing raw land in Florida for income producing rental property, possibly a horse farm for sale in the beautiful rolling lands near Tryon, NC.

* An apartment building in downtown Detroit for an office building in Up-and-coming Marshall, North Carolina

WHICH would you choose? Check out my poll to your fight. 

Provided the property is initially acquired and held for either business or investment purposes, it can qualify as a suitable replacement property under IRC Section 1031. Also, real properties generally are of a Like-Kind,
regardless of whether the properties are improved or unimproved.  

TOTALLY TRUE: Investors do not have to exchange for exactly the same type of property.

CAUTION: The Section 1031 Code was amended in 1989  rendering property outside the United States NON “Like Kind”.

copyright greenolina 2007






True Guide to AGING IN PALACE eBooklet Becomes Amazon Best Seller

Your Home for Today and Tomorrow- Smart UP-Fitting
GO HERE - for Tips & Talking Points.
 Home Decorating, New Space Design


Aging in PaLACE eBooklet


"Helpful starting points for talking about and designing
a functional and BEAUTIFUL lifelong home."


Asheville NC Real Estate Journal for RESOPURCES & REFERRALS -Mountain Homes and Land Legacies- Asheville 1031 Realty© 2014.  Designations: NAR GREEN®, EcoBroker®, Eco Certified ®Real Estate Consultant, ePRO®. Unauthorized reproduction of any information including photos and graphics on this site is a violation of existing copyright laws.  All rights reserved.

he Necessary Disclaimer! We disclaim liability for damages or losses, direct or indirect that may result from use of or reliance on, information contained in the blog or for accuracy of comments or opinions of visitors to our blogs.



-Tell us what is most important to you-
 Email me  or give a call at: 828-776-0779

LIC #:209970


I own a 2 bed 2 bath condo in Bradenton Fla around 900 sq ft. I would like to exchange for or towards a small farm in the mountains of NC or Viginia. Please advise......The value of the condo around 120,000-130,000.
Posted by james srackangast about 12 years ago


As I am updating my posts I came across your comment. Please contact me if you are still intereseted in information. Sorry for the delay. And hope to hear back from you.

Posted by . 4Terra Land Brokers .. 828-776-0779 Asheville NC, What's Most Important to YOU? Call(828)-776-0779 ( REAL ESTATE RESOURCES & NETWORK ) over 11 years ago
Janeanne - good post for consumers.  I hope you got in touch with that guy!
Posted by Georgie Hunter R(S) 58089, Maui Real Estate sales and lifestyle info (Hawai'i Life Real Estate Brokers) over 11 years ago


Thanks for your comment. I really enjoy working with Land/1031 exchanges and have found over the past many years that this is a great opportunity for investors. It makes me smile to think that you think I explained the process in a way that could be understandable.

Posted by . 4Terra Land Brokers .. 828-776-0779 Asheville NC, What's Most Important to YOU? Call(828)-776-0779 ( REAL ESTATE RESOURCES & NETWORK ) over 11 years ago
I attended a seminar in Sarasota a few months ago about 1031 exchanges - it was a real eye opener!
Posted by Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional, Palm Harbor, Dunedin, Clearwater, Safety Harbor (Charles Rutenberg Realty) over 11 years ago


Seems to be one of the best-kept secrets around...but the intricacies can be challenging. .. do you think? Rather like the graphic I got for this post (see below)  I keep my calender handy at all times when working with 1031 Like-Kind Exchange clients, believe me!

Posted by . 4Terra Land Brokers .. 828-776-0779 Asheville NC, What's Most Important to YOU? Call(828)-776-0779 ( REAL ESTATE RESOURCES & NETWORK ) over 11 years ago
Great post.  It is amazing how many people don't understand what like-kind means.  One word of caution.  The 1031 exchange will defer the capital gain taxes but will not defer depreciation recapture taxes when a taxpayer exchanges out of an improved property and into an unimprove property.  It works great in the opposite direction, and may still make sense depending on the amount of recapture and the investors goals.
Posted by Bill Exeter, 1031 Tax-Deferred Exchange Expert (Exeter 1031 Exchange Services, LLC) over 11 years ago
JaneAnne - good information. 1031's are something I know very little about and your information is helpful!
Posted by Mary McGraw, 2015: Solar Energy Is Still A Simple Machine! (GLREA) over 11 years ago
janeAnne,  this is great information. I have it bookmarked!!
Posted by Stephanie Edwards-Musa, knitwit at thred UP ( over 11 years ago


Nice post on exchanges! After giving examples such as the ones you provided, when I'm giving a presentation I summarize by saying "It comes down to this - if the property sold and the property purchased are both either held for investment or used in the pursuit of a business or a trade, then we're talking about like-kind property."

Ken Tharp, Iowa Equity Exchange 


Posted by Ken Tharp, Section 1031 Exchanges, Iowa/U.S. (Iowa Equity Exchange) over 11 years ago

This blog does not allow anonymous comments