Please, Don’t Let This Be a Taxable Exchange! Learning about the Like-Kind Exchange Rule

Section 1031 of the I.R.C. provides that no gain or loss will be recognized when real property held for productive use in a trade or business, or for investment, is exchanged for like-kind real property, also held for productive use in a trade or business or for investment. This practice note tells more.

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Related Content

• Commercial Real Estate Interests: Tax Considerations and Strategies on Disposition of Real Property
  Learn more about voluntary and involuntary dispositions of real property and their related tax implications.

• Foreign Investment in Real Property Tax Act Fundamentals
  See how the Foreign Investment in Real Property Tax Act (FIRPTA) authorizes the United States to tax foreign persons on dispositions of U.S. real property interests, yet Section 1031 still permits an exception to gain recognition. If the property is being exchanged for another U.S. property, the sale may qualify as a non-recognition transaction. However, the foreign seller has only 20 days after the closing to designate a new property to be purchased. In contrast, U.S. citizens have 45 days for the designation.

• 1031 Like Kind Exchange Resource Kit
  Reference this resource kit that provides materials on exchanges of real property under Section 1031 and sets forth related Practical Guidance practice notes, templates, and clauses. 

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