What Qualifies for a 1031 Exchange?
A 1031 exchange only works for investment real property. Personal property no longer qualifies after the 2017 tax law change, and your own home is off the table too, since a personal residence is governed by separate personal-residence rules. In short, if the property is held for investment or business use, it is a candidate; if you live in it or it is personal property, it is not.
Key points
- Only real property held for investment or business use qualifies.
- Personal property does not qualify (changed by the 2017 tax law).
- Your personal residence does not qualify — separate personal-residence rules apply.
Learn more
Not sure if your property is eligible? Check the 1031 exchange FAQ or ask a qualified intermediary.
Full transcript
So, what qualifies you for a 1031 exchange? Investment real property. What does not qualify? Personal property and personal residences, which are governed by the personal residence rules.