A hangar is real estate. Used in a trade or business or held for investment, it can be replacement property in a like-kind exchange under IRC 1031. That is why operators and investors look at hangars the same way they look at other commercial assets. It is not automatic.

Deeded hangars (building and land) are the cleanest 1031 fact pattern. Leasehold can qualify when the remaining ground-lease term is long enough under the tax rules, but that is a fact-specific call for your CPA and qualified intermediary, not a slogan on a website.

Timing still applies: identify replacement property in 45 days, close in 180, use a qualified intermediary, do not touch the proceeds. The hangar still has to fit the aircraft: door height, width, depth, wingspan, fuel, and airport rules.

This is not tax, legal, or accounting advice. Talk to your CPA and a qualified intermediary before you sell the relinquisher.

Robert Johnson, Realtor®, CENTURY 21 Olympian, works hangar inventory at DWH and AXH for 1031 buyers and operators. Call 281-250-0188.

Live example (not a 1031 opinion): 5519 W Arcola at AXH, fee-simple hangar, $1,200,000, over 10,000 SF plus three suites.