The term “like-kind” property isn’t specifically defined in the tax code. IRC Section 1031 does not limit “like-kind” property to certain types of real estate. Any real property held for productive use in a trade or business or for investment can be considered “like-kind” property. The term refers to the nature or character of the property, rather than its grade or quality. Real property is generally considered to be of “like-kind” regardless of whether the properties are improved or unimproved. In a 1031 exchange, real property must be exchanged for like-kind real property and real property is not considered like-kind to personal property.