For Section 1031 purposes, real properties are generally like-kind when they are of the same nature or character even if they differ in grade or quality. Improved and unimproved U.S. real property may generally be like-kind, subject to the rules and transaction facts.

Replacement property generally must be clearly identified in writing within 45 days after the transfer of the relinquished property. The identification must satisfy technical requirements regarding description and delivery.

Replacement property generally must be received by the earlier of 180 days after the relinquished-property transfer or the due date, including extensions, of the taxpayer's federal return for the tax year in which the transfer occurs.

A taxpayer may generally identify up to three replacement properties regardless of value, or any number if their aggregate fair market value does not exceed 200% of the aggregate fair market value of the relinquished property. Additional rules can apply if those limits are exceeded.

A partnership or limited-partnership interest generally does not qualify as real property for Section 1031. Some alternative ownership structures may be evaluated differently, but eligibility is highly fact-specific and should be reviewed before the relinquished property closes.

If money or non-like-kind property is received as part of the exchange, some gain may be recognized. Cash, liabilities and other transaction facts can affect the calculation.

Qualified intermediaries are commonly used as an IRS safe-harbor structure in deferred exchanges. Receiving or controlling sale proceeds can jeopardize exchange treatment, so the structure should be established before closing.

A qualifying exchange generally defers gain rather than permanently eliminating it. Carryover basis and future disposition continue to matter.

Like-kind exchanges are generally reported on IRS Form 8824, with additional reporting potentially required depending on transaction facts and any recognized gain.