A depreciable property refers to any property that is used in a trade or business or held for investment purposes, and which has been subject to depreciation deductions for tax purposes. Examples of depreciable properties may include buildings, machinery, vehicles, and other tangible assets.
In a 1031 exchange, the term "like-kind" refers to the requirement that the property being exchanged must be of the same nature or character as the property being sold. Therefore, a depreciable property can be exchanged for another depreciable property, as long as both properties are of the same nature or character.
It's important to note that the tax rules for 1031 exchanges can be complex, and it's recommended to consult with a qualified tax professional before engaging in any such transactions.
We'd love to guide you through the 1031 process, let us know how we can help!