EXCHANGE STRUCTURES

Partial exchange

Also called: partial 1031 · partially taxable exchange

⌕ Search dictionary
PLAIN-ENGLISH DEFINITION

An exchange in which only part of the transaction receives deferral and some gain may be currently recognized.

What it means in practice.

Receiving money or other non-like-kind property, or otherwise not fully replacing exchange economics, can result in partial recognition while other gain remains deferred.

Why it matters.

A transaction can still have meaningful deferral even when it is not fully tax-deferred.

Additional notes.

Receiving money or other non-like-kind property, or otherwise not fully replacing exchange economics, can result in partial recognition while other gain remains deferred.

PRIMARY / REFERENCE SOURCES

Read the source material.

KEEP LEARNING

Build the vocabulary before the transaction clock starts.

Explore the federal framework, exchange structures, replacement-property intelligence and professional roles connected to this term.