The rules concerning time limits and documentation are the same for both kinds of exchanges. However, when it comes to finding replacement property , the rules governing personal property are much more strict than those for real property. So, if the taxpayer relinquishes farmland, he or she can replace it with, for example, other farmland, residential rental property, a strip mall, or a carwash. An exchange which includes real estate and personal property, such as the exchange of a business, is called a multiple asset exchange . It cannot act as the tax or legal adviser for an exchanging taxpayer.
Any person considering a tax-deferred exchange is advised to seek independent tax and legal counsel.