What this guide helps you evaluate
U.S. owners evaluating a like-kind exchange of investment or business real property.
Prepared by the PROFENG Editorial & Engineering Team. This page is designed to help you compare the moving parts, organize due diligence and ask better questions before you commit money, sign a contract or change an operating process.
What to compare first
- Both relinquished and replacement assets held for business or investment
- Real property status and like-kind treatment
- Qualified intermediary and control of proceeds
- Identification and completion timing
- Boot, debt replacement and basis implications
Step-by-step process
- 01
Discuss the planned sale with tax counsel and an intermediary before closing.
- 02
Confirm the property is held for a qualifying purpose rather than primarily for sale.
- 03
Model replacement value, debt and cash requirements.
- 04
Document identification and exchange actions within applicable deadlines.
- 05
File required tax reporting and keep settlement statements and exchange records.
Common mistakes and risk checks
- Receiving sale proceeds directly and breaking exchange structure.
- Assuming U.S. and foreign real property are like-kind to each other.
- Ignoring taxable boot or basis consequences.
Primary and official references
Rules, pricing and requirements can change. Use these sources to verify the latest details that apply to your situation.
How to use and verify this guide
Use the comparison criteria and questions as a decision framework, then verify current prices, legal requirements, technical specifications, service terms and regulatory obligations with the primary or official references listed above. PROFENG explains its source, calculation and review principles on the methodology page.