Tax and other implications of land trade

[Dom Nico]

If I trade property I own in exchange for a property owned by a non-profit organization, what do I need to consider regarding taxes or anything else that could impact the transfer? How should we structure the transfer, deeds, etc.? No money will be exchanged, just my 2 lots for their 1 lot.

Plans for the property I'll be receiving are still up in the air. Might sell, might keep and lease or develop. Not knowing the final plan, I'm not sure if 1031 is a good option. I'm still learning. 

Someone told me to treat the transfer as 1 for 1, and then treat the 2nd lot separately as a gift donation. 

What's the best option?

[Benjamin Weinhart]

Hi Dom, it's inadvisable to treat the 2nd property as a gift since that's not the intent of what's going on in this case. Best to just combine them for the purposes of this transaction. A 1031 exchange can be a good option because although there is no cash involved in the deal, you would still recognize a gain based on the fair market value of the properties being received over the basis of the property you're giving up (if it's a gain).