What Can Be Exchanged
Property used in a trade or business and investment property held for appreciation may be exchanged.
- Real Estate. Real estate including water, timber and mineral rights, easements and long-term leases.
Stocks, bonds and partnerships may not be exchanged. (See what cannot be exchanged?)
Examples of Real Estate Property
- Fee Interest (which is an entire interest in real estate).
- Fractional interests, such as a partial undivided interest as a tenant-in-common with other partial interest owners.
- Leasehold interests that are 30 plus year leases. See Treas. Reg. 1.1031(a)-1(c). Permanent easements for conservation and right-of-ways, such as utility easements or towers. PLR 96-01-046.
- Development rights. PLR 200805012.
- Perpetual water and mineral rights. Revenue Ruling 55-749 , Oil & Gas rights.
- Payment for Tobacco Quotas.
- Air Rights. Revenue Ruling 54-575, Revenue Ruling 71-286.
- Mitigation credits for the restoration of wetlands.
- Rental houses in the U.S. for rental condominium units in the Virgin Islands. PLR 9038030.
- Real property for 100% of interests in a partnership owning real property. PLR 200807005.
- Fee simple interests in real property for fee simple interests in other real property subject to 99-year condominium leases.
- Real property containing an operating sand mine for commercial rental property. Beerler v. Comm'r, TC Memo 1997-73.
- Gold mine for a coal mine.
- Commercial building for a condominium interest in a newly constructed commercial building.
- Cooperative housing corporation stock for condominiums in the same physical property.
- Deep water storage terminal facilities for similar facilities situated inland.
- Unencumbered farm lands, farm buildings and unharvested crops together as one property.
- Billboards / outdoor advertising displays.