EXCHANGE STRUCTURES
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Partial exchange
Also called: partial 1031 · partially taxable exchange
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.
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