Section 1031

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Section 1031

A section of the Internal Revenue Code that allows for the deferral of capital gains taxes on the exchange of two assets, of like kind even if of different quality, provided that the assets are used for a business purpose. Under Section 1031, the goods exchanged are not assessed capital gains taxes, or more properly, capital gains taxes are deferred until an asset is resold with no intention of reinvestment. Section 1031 also allows one to sell an asset with the intention to use the proceeds to buy a similar asset. For example, if a farmer sells his farm and uses the money to buy another farm, capital gains taxes are likely deferred on the money he made on the sale of the first farm. The same would be true if the he traded a farm for a farm. Stocks and bonds are expressly excluded from this preferential treatment.

Section 1031 (26 U.S.C.§1031)

The Internal Revenue Code section that addresses tax-deferred exchanges, also called like-kind exchanges. See 1031 exchange. To find the law's text, see the instructions at Section (federal code).

References in periodicals archive ?
Thank goodness for Internal Revenue Code Section 1031, which allowed for the realization that, unlike selling an investment interest in one business entity (such as the Coca-Cola Corporation) and then reinvesting in another business entity (such as the Pepsi Corporation), selling a real property and then immediately exchanging it for another like-kind real property was not a change in the actual investment at all, and therefore should not be taxed.
CDEC is a premier provider of Qualified Intermediary services for taxpayers seeking to structure tax-deferred like-kind exchanges under Internal Revenue Code Section 1031, under which a taxpayer may defer the gain on the sale of certain investment property if the taxpayer utilizes the services of a Qualified Intermediary.
CDEC is a provider of Qualified Intermediary services for taxpayers seeking to structure tax-deferred like-kind exchanges under Internal Revenue Code Section 1031. Under IRC Section 1031, a taxpayer may defer the gain on the sale of certain investment property if the taxpayer utilises the services of a Qualified Intermediary.
Further, the proceeds of this transaction will be used through an Internal Revenue Code Section 1031 like-kind exchange (1031-Exchange).
Idaho rents have increased by 10 to 15 percent during the past year.<br />Many of Swope's California clients are acquiring Idaho properties through exchanges under Internal Revenue Code section 1031. It allows buyers who sell investment properties and invest in new real estate to defer capital gains and related federal income tax liability.
FCPT funded the acquisition with proceeds from its revolving line of credit and from an Internal Revenue Code Section 1031 like-kind exchange sale of an Olive Garden property in Florida announced earlier this week.
hotels to be acquired with the proceeds from the sale of the Waldorf Astoria New York are expected to be part of a like-kind exchange under Internal Revenue Code Section 1031. The total purchase price of these five hotels of $1.76 billion represents approximately 13x the midpoint of the five properties' combined full-year forecasted 2015 Adjusted EBITDA of between $132 million to $138 million.
in one or more transactions as part of a like-kind exchange under Internal Revenue Code Section 1031. These acquisitions will be finalized and announced at a later date.
Hilton said it intends to use the proceeds from the sale to acquire additional hotel assets in the US in one or more transactions as part of a like-kind exchange under Internal Revenue Code Section 1031. These acquisitions will be finalized and announced at a later date, it added.-TradeArabia News Service
The 1031 Exchanges (pursuant to Internal Revenue Code Section 1031) was the model for tax free corporate reorganizations.
Real estate investors have long recognized the tax benefits of like-kind exchanges under Internal Revenue Code Section 1031. (1) Section 1001 of the Internal Revenue Code (IRC) (2) generally requires the recognition of realized gains and losses on the sale or disposition of property.
Internal Revenue Code section 1031, tax deferred exchanges, provides investors with one of the last available tax shelters by allowing them to avoid paying any taxes when investment properties are sold.

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