Which of the following is NOT a requirement for a property to qualify for a section 1031 like-kind exchange?

A property must meet several specific requirements to qualify for a Section 1031 like-kind exchange, aimed at deferring capital gains taxes when exchanging one investment property for another. The requirement that is not essential for the property to qualify for this exchange involves the nature of the transaction, specifically in relation to cash handling.

When performing a like-kind exchange, it is true that if cash or "boot" (non-like-kind property) is received in the swap, it does not disqualify the entire exchange from being treated as a 1031 exchange. Therefore, an exchange can include both cash and property. What’s important is that the majority of the transaction includes like-kind properties, and this cash aspect does not prevent the properties involved from qualifying under Section 1031.

In contrast, the other options highlight critical conditions regarding the nature and timing of the property, such as the requirement for the property to be held for investment or business purposes, the stipulation that the proceeds from the sale must be reinvested in another like-kind property within a specific timeframe, and the need to identify a replacement property swiftly after the sale. These criteria are essential for ensuring the exchange adheres to IRS guidelines for deferring taxes on capital gains.