What qualifies as “like-kind” property?

Two properties are considered of like-kind in nature if they are of similar character. In other words, all real property can be exchanged with other real property. For example, a rental condo may be exchanged with a farm and an office building may be exchanged for a piece of vacant land. Additionally, all personal property can be exchanged for other personal property.  (Note: there are some limitations with the exchange of personal property.)  As long as the property, real or personal, is used for income or investment purposes, it can be exchanged.