What is a 1031 Exchange?
Section 1031 of the Tax Code (a 1031 Exchange) provides that no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment (the relinquished property) for another “like-kind” property also to be held for productive use in a trade or business or for investment (the replacement property).
Although an investor can simultaneously exchange relinquished property for like-kind replacement property, many investors take advantage of the delayed exchange structure, which allows an investor time to identify and acquire a replacement property.

"Like-kind" Property
The “like-kind” requirement for real estate exchanges is considerably broad. In most instances, assuming all other requirements under IRC 1031 are satisfied, as long as an investor exchanges real property held for investment or used in trade or business for other real property also to be held for investment or used in a trade or business, it will qualify. While a property held primarily either for personal use or for sale may not be exchanged, most other investment real property may be exchanged.
For example, the following examples of real property are considered like-kind to each other: Raw or unimproved land, Rental houses, Apartment buildings, Shopping Centers, Condominiums, Warehouses, Office Buildings, Hotel/Motels, Leasehold interests (30 years or more), Tenancy-in-Common interests (TICs), or co-owned properties.