Like-Kind Exchange Worksheet

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This tax worksheet examines the disposal of an asset and the acquisition of a replacement “like-kind” asset while postponing or deferring the gain from the sale if proceeds are re-invested in the replacement asset.

Qualifying property must be held for use in a trade or business or for investment. Property used primarily for personal use, like a primary residence or a second home or vacation home, does not qualify for like-kind exchange treatment.

Both properties must be similar enough to qualify as "like-kind." Like-kind property is property of the same nature, character or class. Quality or grade does not matter. Most real estate will be like-kind to other real estate.

Specific types of property are excluded from like-kind treatment:

  • Inventory or stock in trade
  • Stocks, bonds, or notes
  • Other securities or debt
  • Partnership interests
  • Certificates of trust

For further assistance on this topic, click the Tax Flowcharts item group Tax worksheets item group button button and view the Like-Kind Exchange tax flowchart.

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