On this Thankful Thursday we are grateful for the flexibility of “like-kind” when it comes to real property. In a 1031 tax-deferred exchange, you must acquire like-kind property but any kind of real property can be exchanged for any other kind of real property. Like-kind refers to the natural or character of the property not the specific type of property. What makes real property like-kind to another is that they are held for productive use in a trade or business or for investment.
The Marcellus Shale is a rock formation lying 5,000 to 9,000 feet below the surface, stretching from New York State through West Virginia of which sixty percent is located in Pennsylvania. Marcellus Shale exploration and drilling has overtaken the northern to southwestern part of Pennsylvania, and with it comes many new challenges and opportunities for the landowners in this area, and 1031 exchanges may help.