What is a like-kind exchange?
When you exchange (trade) business or investment property of the same nature or character (for example, vehicles or real estate), it's called a like-kind exchange. This gets reported on IRS Form 8824.
Generally, any taxable gain is deferred from a like-kind exchange, unless other non-like-kind property like cash is involved. Losses on like-kind exchanges are usually not recognized.
Exchanges of personal-use property, securities, and inventory don't quality as like-kind exchanges.