ˈReal Property rē(-ə)l: adjective / ˈprä-pər-tē: noun
Legally, the terms “real estate” and “real property” can be used interchangeably.
For real property transactions (rental houses, farmland, office buildings, commercial land, etc.) the “like-kind” requirement does not mean selling and buying the exact same type of property. The term “like-kind” refers to the nature or character of the property, not its grade or quality. For this reason nearly all real property is like-kind to each other.
The IRS is actually very broad scoped in the case of real property like-kindness. The regulations state that “all real property is like-kind to all real property”. Therefore, if you are selling a real property interest (real property to which you have a fee title) you can look for any kind of real property as a replacement property.
