1031 Exchange under an LLC

[Matthew Heffernan]

I'm trying to help a friend defer capital gains tax in Michigan.

He is selling a business and the real estate to a single buyer, however the property is owned separately under an LLC, which will remain in the Sellers ownership going forward.

Does 1031 exchange limit the exchange to commercial only?  Could a vacation rental property be purchased in exchange for the business/commercial property being sold?

Thank you!

[Matthew Heffernan]

@Dave Foster  Yes you nailed it in your summary.

Thanks all for your responses!