Multiple Asset Services
Investors that own a business or investment asset that consists of both real and personal property, such as a hotel or restaurant are considered "Multiple Asset" Exchangers. An exchange of such a multiple asset property can create an issue when trying to allocate the various assets into their like-kind categories. Another issue is the allocation of the deferred gain and basis among the various assets. However, the Multiple Asset Exchange structure enables Exchangers to realize a greater benefit than if they had structured the transaction as separate exchanges for each various type of asset.
Tax deferred exchanges fall into two distinct types:
Real Property
Personal Property
Both types of property must be held for productive use in a trade or business, or for investment purposes. However, real property can only be exchanged for other real property and personal property assets can only be exchanged for other personal property assets since real property and personal property are NOT like-kind to each other.