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Individuals, C corporations, S corporations, partnerships (general or limited), limited liability companies, trusts and any other taxpaying entity may set up an exchange of business or investment properties for business or investment properties under Section 1031.
8 wrz 2023 · A 1031 Exchange, also known as a like-kind exchange, is a transaction under U.S. tax law that allows an investor to defer capital gains taxes when they sell a property and reinvest the proceeds in a new, "like-kind" property. It's named after Section 1031 of the U.S. Internal Revenue Code.
Form 8824 Instructions provide information on general rules and how to complete the form. Page Last Reviewed or Updated: 09-Oct-2024. Information about the like-kind exchange and requirements under IRS Code Section 1031 for recognizing a gain or loss.
I.R.C. § 1031 PURPOSE: Section 1031 allows owners of business and investment real property to defer payment of capital gains taxes by reinvesting proceeds from the sale of a currently owned property (relinquished property) into new like-kind property (replacement property).
• A Section 1031 Exchange allows an owner of investment real property to exchange real property defer paying federal capital gains tax, depreciation recapture tax and state income taxes and if they purchase “like-kind” real property following rules and regulations of the IRC.
20 gru 2020 · The finalized regulations address the definition of real property for purposes of Internal Revenue Code (IRC) Section 1031 and provide a rule for receiving personal property that is incidental to real property received in a like-kind exchange.
Internal Revenue Code 1031 (IRC 1031) allows investment property owners to defer paying potentially large tax levies in capital gains and recaptured depreciation associated with real estate sales. These transactions are commonly called 1031 or “like kind” exchanges and apply to nearly any investment property.
