1031.Exchange INTELLIGENCE NETWORK
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ELIGIBILITY

Productive use in trade or business

Also called: business-use property · trade or business use

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PLAIN-ENGLISH DEFINITION

Another qualifying purpose for real property under Section 1031.

What it means in practice.

Real property used productively in a trade or business can fall within Section 1031 when the other requirements are met.

Why it matters.

The statute covers more than passive rental investments.

Additional notes.

Real property used productively in a trade or business can fall within Section 1031 when the other requirements are met.

PRIMARY / REFERENCE SOURCES

Read the source material.

irs.gov ↗irs.gov/businesses/small-businesses-self-employed/like-kind-exchanges-real-estate-tax-tipsirs.gov ↗irs.gov/publications/p544
CONNECTED LANGUAGE

Related definitions.

EligibilityHeld for investmentA qualifying purpose under Section 1031: holding real property for investment rather than primarily for personal use or resale to customers.EligibilityReal propertyLand, buildings and certain other interests treated as real property under federal Section 1031 rules.
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