Thank you for the opportunity to help you with your question!
The term like-kind may be used to refer to the nature of a
property and not the quality. This means that it serves the same purpose as the
replaced one. Examples of properties that cannot be considered for like-kind
exchanges include; foreign real estate. This disqualifies the foreign real
estate for the fact that the capital gain taxes may not be collected on the
ultimate disposition of the property. Personal use assets like the vocational
home may not also qualify for the like-kind exchange. This is because it cannot
be used as both for investment and personal purposes.
Please let me know if you need any clarification. I'm always happy to answer your questions.