Very few exchangors are actually aware that they can do personal property 1031 exchanges; however, the restrictions inherent in the definition of "like kind" typically makes exchanges of this type practical of exchangors who are selling assets of a business and exchanging for assets of a similar or identifcal business.

In personal property 1031 exchanges, properties of a "like class" are considered to be like kind for purposes of a 1031 exchange under Section 1031. In addition, the IRS provides safe harbors for like-kind exchange or "LKE" programs involving ongoing exchanges of tangible personal property using a single unrelated intermediary; See Rev. Proc. 2003-39. Generally, depreciable personal properties are deemed to be of a like kind if, as of the date of the exchange, they are either within the same “general asset class” of the North AmericAn Industry Classification System (NAICS) as set forth in the NAICS manual, as periodically updated.A single property may not be classified within more than one general asset class or more than one product class; further, property classified within any general asset class may not be classified within a product class. A property's general asset class or product class is determined as of the date of the exchange.

In an exchange of intangible or non-depreciable personal property, personal property qualifies for nonrecognition of gain or loss under I.R.C. Sec. 1031 only if the 1031 exchanged properties are deemed to be like kind. Since there is no comprehensive classification scheme in place for intangible or non-depreciable personal property, the determination of whether intangible personal properties are of a like kind generally depends on the nature or character of both the rights involved and of the underlying property to which the intangible personal property relates; See Treas. Reg. Sec. 1.1031(a)-2(c)(1). .