Tax Code Section 1031

Paragraph 2 d of section 1031 a of the internal revenue code of 1986 as amended by subsection a shall not apply to any exchange of an interest as general partner pursuant to a plan of reorganization of ownership interest under a contract which took effect on march 29 1984 and which was executed on or before march 31 1984 but only if all the exchanges contemplated by the reorganization plan are completed on or before december 31 1984.

Tax code section 1031. Section 1031 is a provision of the internal revenue code irc that allows business or investment property owners to defer federal taxes on some exchanges of real estate. The term 1031 exchange is defined under section 1031 of the irs code. 1 section 1031 is also.

Prior to the tcja both real property and personal property were eligible for like kind exchange treatment. The term which gets its name from irs code section 1031 is bandied. Exchange of property held for productive use or investment on westlaw findlaw codes are provided courtesy of thomson reuters westlaw the industry leading online legal research system.

Under the tax cuts and jobs act section 1031 now applies only to exchanges of real property and not to exchanges of personal or intangible property. A 1031 exchange named after section 1031 of the u s. 1 to put it simply this strategy allows an investor to defer paying capital gains taxes on an investment property when it is sold as long another like kind property is purchased with the profit gained by the sale of the first property.

1031 a taxpayer may defer recognition of capital gains and related federal income tax liability on the exchange of certain types of property a process known as a 1031 exchange. Internal revenue code is a way to postpone capital gains tax on the sale of a business or investment property by using the proceeds to buy a. An exchange of real property held primarily for sale still does not qualify as a like kind exchange.

For more detailed codes research information including annotations and citations please visit westlaw. Internal revenue code 1031. In real estate a 1031 exchange is a swap of one investment property for another that allows capital gains taxes to be deferred.

In 1979 this treatment was expanded by the courts to include non simultaneous sale and purchase of real estate a process sometimes called a starker exchange. Under section 1031 of the united states internal revenue code 26 u s c.