A like-kind exchange under United States tax law is a transaction or series of transactions that allows for the disposal of an asset and the acquisition of another replacement asset without generating a current tax liability from the sale of the first asset. A like-kind exchange can involve the exchange of one business for another business, one real estate investment property for another real estate investment property, livestock for qualifying livestock, and exchanges of other qualifying assets. Like-kind exchanges have been characterized as tax breaks or "tax loopholes."
Read more about Like-kind Exchange: Like-Kind Exchange: U.S. Tax Code Section 1031, Like-Kind Exchange: A Non-Recognition Provision, Like-Kind Exchange: Key Considerations, What Is Property of “Like Kind”?, Basis of Property Acquired in Like-Kind Exchange, Other Property Given or Received in The Exchange: “Boot”, Assumption of Taxpayer’s Liability in A Like-Kind Exchange, Like-Kind Exchange of Loss Property, Like-Kind Exchange of Loss Property With A Relative, Simultaneous Three-Party Like-Kind Exchanges, Deferred Like-Kind Exchange: Time Is Money, Reporting A Like-Kind Exchange, As A "tax Loophole"
Famous quotes containing the word exchange:
“... the subjective viewpoint is the only one to use regarding a library. Your true library is a collection of the books you want. You may have deplorably poor taste or bad judgment. Never mind. Correct those traits before you exchange your books.”
—Carolyn Wells (1862–1942)