You may want to refer to that issue when reading this, since there is a connection between the two. At that point, it is too late to obtain like-kind exchange treatment for one simple reason the owner has sold the property and obtained the proceeds.
Careful planning is needed to obtain exchange treatment and avoid incurring capital gains tax.
While much of this planning is intended to insure compliance with the many rules for tax-free treatment, there are other alternatives that are frequently overlooked. Let's consider three possible situations. Mr. Fudd wants to move into a small condominium and be relieved of the headaches and expenses of maintenance. Assuming Mr. Fudd can afford to pay rent, he moves out and rents the home and 10 acres before offering it for exchange treatment. By so doing, Fuddmore Estates is converted to business rental property that can be exchanged tax-free for other business or investment property not requiring maintenance, such as vacant land or managed condos.