Like-kind exchanges of real estate: Back to basics This item discusses the basic requirements for like-kind exchange treatment, explains updates to the definition of real property, and highlights issues that taxpayers should keep in mind when engaging in these transactions
Like-kind exchanges of real property - Journal of Accountancy The taxpayer pays $198,000 less in tax using a Sec 1031 exchange versus an outright sale, a significant reduction from the $378,870 in tax savings that would accrue from using a like-kind exchange under the current rules; however, the like-kind exchange is still the better option
Like-Kind Exchange: Definition, Example, Pros Cons After 2017, a like-kind exchange applies only to the exchange of a business or real estate investment property for another property A like-kind exchange is used when someone wants to sell an
What are the Like-Kind Exchange Rules in 2024? - Landmark CPAs According to the IRS, a like-kind property must be “of the same nature or character, even if they differ in grade or quality ” The rule essentially means that the properties should be used for similar purposes For example, if you are selling a rental property, the like-kind property you are purchasing should be used for similar business purposes
A Professional Guide to Like-Kind Exchanges of Real Estate: Basics . . . Modernized under Sec 1031, this provision encourages economic growth by allowing taxpayers to defer taxes when exchanging real property of a similar kind This guide provides an overview of the key rules governing like-kind exchanges, recent regulatory updates, and illustrative examples to clarify the process
Publication 544 (2024), Sales and Other Dispositions of Assets If you receive property in a like-kind exchange and the other party who transfers the property to you does not give you the title but a third party does, you can still treat this transaction as a like-kind exchange if it meets all the requirements
Revised Like-Kind Exchange Rules - Beasley, Bryant Company, CPAs, P. A. The current rules that allowed a non-spouse IRA beneficiary to "stretch" required minimum distributions (RMDs) from an inherited account over their own lifetime has been eliminated The rule applies to inherited funds in a 401 (k) account or other defined contribution plan as well
Like-kind exchanges of real property: New final regs. As most tax practitioners know, an interest in real property is the only type of property that currently qualifies for a like-kind exchange because the law known as the Tax Cuts and Jobs Act (TCJA), P L 115-97, narrowed the application of Sec 1031