Section 1031 Of Internal Revenue Code

1031 states the recognition rules for realized gains or losses that arise as a result of an exchange of like kind property held for productive use in trade or business or for investment.

Section 1031 of internal revenue code. Internal revenue code 1031. For more detailed codes research information including annotations and citations please visit westlaw. On june 11 2020 the irs released proposed regulations for like kind exchanges under internal revenue code the code section 1031 to incorporate the tax cuts and jobs act tcja changes.

Prior to the tcja both real property and personal property were eligible for like kind exchange treatment. Section 1031 of the internal revenue code allows an owner of investment property to exchange property and defer paying federal and state capital gain taxes 15 20 applicable state taxes and taxes on gain from depreciation 25 and the obama care tax 3 8 when required if they purchase a like kind property following the rules and regulations of the internal revenue code. It states that none of the realized gain or loss will be recognized at the time of the exchange.

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. Section 1031 like kind exchanges. Section 1031 a of the internal revenue code 26 u s c.

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