QUALIFYING PROPERTY In Section 1031, the IRS states that property will qualify for an exchange if it meets the following requirements: Property must be held for a productive use in a trade or business or for investment and must be exchanged for like-kind property held for a productive use in a trade or business or for investment. "Like-kind" - Like-kind means that real property must be exchanged for real property, and personal property must be exchanged for personal property. REAL PROPERTY PERSONAL PROPERTY