replacement property

replacement property

A property received in a 1031 exchange. The first property given up is the relinquished property.

References in periodicals archive ?
2) The property that the taxpayer transfers is usually referred to as relinquished property, and the property received is referred to as replacement property Deferred transactions may qualify as like-kind exchanges if they are completed by the earlier of the due date of the tax return for the tax year in which the transfer of the relinquished property occurs or 180 days after such transfer.
The replacement property cannot have been acquired for immediate resale, nor can it be the taxpayer's personal residence.
The relinquished property and replacement property must be "like kind.
IRS extends livestock replacement period for drought-affected ranchers, dairy producers: The IRS has granted farmers and ranchers affected by exceptional, extreme or severe drought conditions additional time to purchase replacement property for livestock they were forced to sell this year.
In many cases, taxpayers hold replacement property until they die, allowing their heirs to inherit the property without having to pay any capital gains taxes.
168(i)-6 provide rules and examples to help harmonize depreciation treatment under the modified accelerated cost recovery system (MACRS) of the exchanged basis of relinquished and replacement property in like-kind exchanges and involuntary conversions under IRC [section][section] 1031 and 1033.
How long must a replacement property acquired in a like-kind exchange be held as an investment, rental, or business property before it can be converted to personal use, e.
That land runs next to other property owned by a church, which college officials hope will accept a replacement property.
The capital gains tax from the sale can be deferred until the replacement property is later disposed of.
The IRS also looked at the section 1031 replacement property identification requirements in this TAM, and applied them rigorously to the taxpayer's disadvantage.
Failure to timely identify replacement property will cause a loss of the tax deferral.
NNNEx allows sellers, buyers and brokers to search updated property listings, post specific replacement property needs and timing requirements, become alerted to new listings that meet their investment criteria and market their properties for sale at no cost.

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