Property eligible for 1031 exchanges have many similar characteristics. The real and personal property are either held for use in a business or for an investment. The more the property is used personally, like a vacation property, the less the likelihood the Internal Revenue Service would grant the tax deferral.
It depends. In the 1031 exchange world, water, oil, gas, minerals, timber are packaged into salable interests based upon the demand seeking to acquire it. Those interests are leases, deeds, bill of sale, royalties, production payments and rights of ownership. What makes one eligible for 1031 tax deferral treatment? What qualities does the interest require to be like-kind to real property?