RELATED TAX STRATEGIES
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Section 721
Also called: 721 contribution · partnership contribution
A separate tax rule that can allow nonrecognition when property is contributed to a partnership in exchange for a partnership interest, subject to applicable rules.
What it means in practice.
Section 721 is often discussed in real-estate succession and UPREIT conversations, but it is not a Section 1031 exchange.
Why it matters.
It can appear after or instead of an exchange strategy, so the concepts should not be blended casually.
Additional notes.
Section 721 is often discussed in real-estate succession and UPREIT conversations, but it is not a Section 1031 exchange.
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