I have a client who owns 8 poultry houses.  He wants to know if he can 1031 the property?  If so, what could he exchange for?  After review of prior years tax return, this property has been depreciated over 10 years and is consistent with the term "single purpose agricultural or horticultural structure" which is 1245 property.  Property was purchased in 2001 and has a net book value of approx $275,000 with the possibility of $950,000 in 1245 recaputure if not exchanged for like kind 1245 property.  My question or the trouble I'm having is helping idenitfy possible like kind exchange property.  Any ideas or suggestion would be appreciated.  Selling price is 1,375,000.

It appears the only way to avoid recaputre is if he would exchange property with like kind single purpose agricultural or horticultural structure.  If he exchanges for 1250 property he still has to recaputure.

Do you agree that poultry houses are 1245 property?  There is 60 acres of land associated with the sale.  Could we split?