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1031 Exchanges
Doing a 1031 Exchange might be a benefit to you when buying or selling real estate. Ask your All Season Resort Realty agent for more information.
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Like-Kind Exchanges - Real Estate Tax Tips
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Generally, if you exchange business or investment property solely for business or investment property of a like-kind, no gain or loss is recognized under Internal Revenue Code Section 1031. If, as part of the exchange, you also receive other (not like-kind) property or money, gain is recognized to the extent of the other property and money received, but a loss is not recognized.
Section 1031 does not apply to exchanges of inventory, stocks, bonds, notes, other securities or evidence of indebtedness, or certain other assets.
Like-Kind Property
Properties are of like-kind, if they are of the same nature or character, even if they differ in grade or quality. Personal properties of a like class are like-kind properties. However, livestock of different sexes are not like-kind properties. Also, personal property used predominantly in the United States and personal property used predominantly outside the United States are not like-kind properties.
Real properties generally are of like-kind, regardless of whether the properties are improved or unimproved. However, real property in the United States and real property outside the United States are not like-kind properties.
References/Related Topics
Note: This page contains information directly from the IRS website. All Season Resort Realty is a real estate brokerage and we do not give tax or legal advice. We strongly recommend that you contact your accountant and/or attorney to get the advice that is best for you and your unique situation.
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