like kind question

[JenMO]

Client owns home, shop, and land - wants to do like kind exchange for another home, shop and land, but is selling present property for $50,000 more than he is spending on new property. Is the $50,000 prorated to each, home, shop and land in proportion to the selling price of each?

[Burke]

The "home" portion will not qualify for like-kind exchange treatment. And probably the land will be apportioned to the home if it was purchased as one parcel originally. You must pro-rate the selling price of the shop to the rest of it.