ACREX · CALDWELL, NJ
1031 Exchanges for NJ Commercial Property Owners
Defer tax on a sale by buying like-kind property.
Selling a NJ warehouse, building or land and buying another? A 1031 exchange can defer the tax on your gain. Here is what the IRS says, and where a broker fits.
The rules in brief
Real property used in a business or held for investment, exchanged for like-kind property, generally defers gain under Section 1031 (IRS).
Since January 1, 2018, only real property qualifies; equipment and vehicles do not (IRS).
Real properties are generally like-kind whether improved or unimproved (IRS).
Cash or other property received is taxable to that extent (IRS).
Report it on Form 8824.
This is general information, not tax or legal advice. Talk to a CPA or tax attorney and a qualified intermediary before you list.
Where AcreX helps
Pricing your relinquished property against Q3 2026 data: northern NJ industrial averages a 6.36% cap rate and $214/SF (Matthews).
Timing the sale and the replacement search together, so you are not forced to buy the wrong building.
Finding replacement property in the six counties we cover, including industrial, retail, multifamily and land.
Sale-leaseback, if you want to sell but keep operating in the building.
Related guides
Owner questions
Does a 1031 exchange apply to NJ commercial property?
Yes, for real property held for business or investment. Since 2018, Section 1031 applies only to real property, and property held primarily for sale does not qualify (IRS).
Is a warehouse like-kind to an apartment building or land?
Generally yes. The IRS says real properties are generally like-kind regardless of whether they are improved or unimproved. U.S. property is not like-kind to property outside the U.S.
What happens if I receive cash in the exchange?
You recognize gain to the extent of the cash or other non-like-kind property you receive (IRS).
How is an exchange reported?
On IRS Form 8824, Like-Kind Exchanges. Deadlines and intermediary rules are in the Form 8824 instructions; confirm them with your tax advisor.
Talk to AcreX
Book a consultation with Jonathan Libock · Call (201) 694-6463 · jon@acrex.co
By Jonathan Libock, AcreX · Published November 2, 2026 · Sources: IRS, “Like-kind exchanges - Real estate tax tips” (last reviewed May 1, 2026); IRS Form 8824; Matthews Northern NJ Industrial Q3 2026.