a tax-deferred exchange that provides an efficient way for a taxpayer to defer capital gain taxes on eligible classes of real and personal property that were initially acquired or held for a business or investment purpose
A transaction involving the exchange of business or investment property of a "like-kind," on which no gain or loss is recognized. This provision allows individuals and businesses to convert one asset to another asset with the same purpose at no immediate tax cost. Only certain types of property qualify for this tax treatment. Such transactions are only nontaxable in the current year; gain or loss is deferred until the qualifying property is disposed of in a taxable exchange.
A tax device for deferring gain on the transfer of a property by exchanging it for similar property. For example, you exchange investment property in New Hampshire for investment property in Colorado. If you receive no cash or unlike property, there is no tax on any gain.
A tax-deferred exchange of similar items you use in your business or hold for investment, not including securities and other indebtedness or interests such as stocks and bonds. The items must be the same type, but they do not need to be of the same grade or quality.
The sale or disposition of real estate or personal property (relinquished property) and the acquisition of like-kind real estate or personal property (replacement property) structured as a tax-deferred, like-kind exchange transaction pursuant to Section 1031 of the Internal Revenue Code and Section 1.1031 of the Treasury Regulations in order to defer Federal, and in most cases state, capital gain and depreciation recapture taxes.
An exchange of property held for productive use in a trade or business or for investment (except inventory and stocks and bonds) for property of the same type. Unless different property is received (called boot), the exchange is nontaxable in the current year. Any gain or loss is not recognized until the property received in the exchange is sold or disposed of. Like-kind exchanges are reported on Form 8824.
The nontaxable exchange of property for the same kind of property.
An exchange of ownership interests in properties considered to be like-kind properties under Section 1031 of the Internal Revenue Code (Code), which qualifies the transaction as a nontaxable exchange if certain other requirements are met. The like-kind exchange provisions apply only to properties held for productive use in a trade or business or for investment (except stock, securities, and similar property). They do not apply to property held primarily for sale to customers, property acquired solely for exchange purposes, or partnership interests. Also see “Business” and “Investment.
A tax-free exchange of assets such as real-estate (not inventory, stocks or bonds) held for either productive use or investment purposes that you may defer paying taxes on if you purchase a property of the same type.
The tax-free exchange of similar business or investment use assets, such as real estate for real estate. The tax on profit accrued in the first property is deferred until the subsequent property is sold.