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Like-kind exchanges -- when you exchange real property used for business or held as an investment solely for other business or investment property that is the same type or “like-kind” -- have long been permitted under the Internal Revenue Code. Generally, if you make a like-kind exchange, you are not required to recognize a gain or loss ...
Feb 28, 2024 · What is a 1031 exchange? A 1031 exchange, named after section 1031 of the U.S. Internal Revenue Code, is a way to postpone capital gains tax on the sale of a business or investment property by ...
Sep 12, 2023 · Still, “the question of ‘how often’ is a gray area in the IRS code,” Lueong warns. This is another reason why consulting your accountant is a must. “It should be noted that a 1031 ...
Aug 29, 2022 · Section 1031: A section of the U.S. Internal Revenue Service Code that allows investors to defer capital gains taxes on any exchange of like-kind properties for business or investment purposes ...
Feb 23, 2024 · The Section 1031 Exchange . The IRS Code Section 1031 exchange allows an investor to trade real estate held for investment for other investment real estate and incur no immediate tax liability.
Real property and personal property can both qualify as exchange properties under Section 1031; but real property can never be like-kind to personal property. In personal property exchanges, the rules pertaining to what qualifies as like-kind are more restrictive than the rules pertaining to real property.
Key takeaways. A 1031 exchange allows real estate investors to defer capital gains taxes by reinvesting the proceeds from the sale of a business or investment property into a new, "like-kind ...
