Category Archives: Like Kind Exchanges

Section 1031 | JD Supra Law News

Section 1031 | JD Supra Law News.

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Gain, Loss and Depreciation Issues in Like Kind Exchange

View PDF of Article in Tax News & Comment — October 2012 GAIN, LOSS, AND DEPRECIATION ISSUES IN LIKE KIND EXCHANGES [Note: Excerpted from Like Kind Exchanges of Real Estate Under IRC. §1031 (David L. Silverman, 3rd Ed.,1/11).View treatise at … Continue reading

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August Comment — Deferred Exchanges Under the Regulations

VIEW IN PDF:  Tax News & Comment — August 2011 [Note: Excerpted from Like Kind Exchanges of Real Estate Under IRC. §1031 (David L. Silverman, 3rd Ed.,1/11).View treatise at nytaxattorney.com] I.  Overview of Statute A deferred exchange may be a … Continue reading

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Like Kind Exchanges of Real Estate Under IRC §1031 — Treatise (January 2011)

PDF: Like Kind Exchange Treatise PDF: Like Kind Exchange Treatise Like Kind Exchanges of Real Estate Under IRC §1031 © 2011 David L. Silverman, J.D., LL.M. (Taxation) Law Offices of David L. Silverman 2001 Marcus Avenue, Suite 265A South Lake … Continue reading

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Like Kind Exchanges of Real Estate Under IRC Section 1031 — Treatise

Over the past three decades, Congress has enacted various Code provisions and modified existing provisions in an attempt to impede taxpayers’ ability to reduce income tax liability when engaging in real property transactions. The Section 1031 “like-kind” exchange is a powerful tax-deferral technique that has, for the most part, escaped rigorous Congressional scrutiny. The statute permits a taxpayer to relinquish property (often real property) held for “productive use in a trade or business” or for “investment” and exchange it for “like kind” replacement property, without recognizing gain or loss. A cash sale of property followed by a cash purchase of like kind property will not constitute a like kind exchange. Halpern v. U.S., 286 F.Supp. 255 (ND Ga. 1968); PLR 7918018. To constitute an “exchange” within the meaning of the statute, the transaction must be a “reciprocal transfer of property, as distinguished from a transfer of property for a money consideration only.” Regs. § 1.1002-1(d). The rationale for nonrecognition in this circumstance stems from Congress’ view that tax should not be imposed on realized gains where the investment continues in nearly identical form. Continue reading

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Installment Sale Reporting of Deferred Exchange Boot

IRC §453 provides that an “installment sale” is a disposition of property where at least one payment is to be received in the taxable year following the year of disposition. Income from an installment sale is taken into account under the “installment method,” whereby income recognized in any taxable year following a disposition equals a proportion of the payments received, that proportion being equal to the gross profit over the total contract price. Continue reading

Posted in Federal Income Tax, Like Kind Exchanges

Refinancings Before and After § 1031 Exchanges

Cash (“boot”) received in a like-kind exchange results in taxable gain to the extent of realized gain. If the taxpayer exchanges Greenacre, whose adjusted basis is $1 million, for $1 million in cash and Whiteacre, worth $1 million, the taxpayer … Continue reading

Posted in Federal Income Tax, Like Kind Exchanges