In a like-kind exchange both of the properties must be held by you for use as a business or as an investment. Doing a 1031 exchange can offer the seller some tax saving dollars and the purchaser the opportunity to earn some commission. The tax savings can allow you to keep your equity and move into properties of higher value each time you perform an exchange. The IRS has specific rules about what types of properties will quality for a like-kind exchange. Trust the professionals at MDP to guide you through the exchange and to complete your tax return to verify that you are getting the benefits from a like-kind exchange.