Like-Kind Exchange

A traditional like-kind exchange allows an Exchanger to defer the tax on the gain from the sale of business use or investment property. Some assets, such as an off-lease automobile when sold, generate relatively low gain and are not economically feasible to place in a single exchange transaction. 

If the Exchanger disposes of many of the same assets on a frequent basis, a Like-Kind Exchange can be an option. This type of exchange is designed to extend the benefits of a 1031 Exchange to the ongoing sale and purchase of like-kind personal property assets.