PROPERTY & LEASING
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Leasehold interest
Also called: leasehold estate · tenant interest
The tenant’s possessory interest under a lease.
What it means in practice.
Long-term leasehold interests can be treated as real-property interests in some tax contexts, but Section 1031 treatment is technical and depends on the nature and duration of the interest.
Why it matters.
Do not assume every lease is like-kind to a fee interest.
Additional notes.
Long-term leasehold interests can be treated as real-property interests in some tax contexts, but Section 1031 treatment is technical and depends on the nature and duration of the interest.
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