Section 1031 generally allows gain to be deferred when qualifying real property held for investment or productive use in a trade or business is exchanged for qualifying like-kind real property. Since 2018, federal like-kind treatment is limited to real property. This guide explains the transaction architecture, why proceeds are usually handled through an intermediary, what “like kind” means for real estate, and where tax, legal and financing advice should enter the process.
Professional use
Use this resource to frame questions for your qualified intermediary, CPA, attorney, broker and lender. Facts and deadlines should be verified against current law and the circumstances of the transaction.
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