1031 exchanges are not just for real estate. Personal property held for productive use in a trade, business or investment is also eligible for tax deferral when replacing with like-kind personal property. The Internal Revenue Code Section 1.1031 is available to individuals, trusts, limited liability companies, and corporations both - foreign and domestic. The benefit to property owners is the ability to adjust their portfolio of assets without having to pay the recognized gain or tax when the property is sold.
Hospitals and medical clinics can defer capital gain when selling and replacing equipment through a 1031 exchange. The equipment is personal property and any personal property used in a business is eligible for 1031 consideration.