Like-Kind Exchange of Loss Property
While taxpayers generally prefer non-recognition for realized gains (so they do not have to recognize the gain currently and pay the resulting federal income tax currently), they usually prefer to recognize realized losses currently in order to obtain the tax benefit of the resulting deduction sooner. That means a like-kind exchange is bad news in the case of a realized loss. None of the loss will be recognized regardless of the boot received.
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Famous quotes containing the words exchange, loss and/or property:
“I should like not to exchange any of my life for money.”
—Henry David Thoreau (1817–1862)
“War is bestowed like electroshock on the depressive nation; thousands of volts jolting the system, an artificial galvanizing, one effect of which is loss of memory. War comes at the end of the twentieth century as absolute failure of imagination, scientific and political. That a war can be represented as helping a people to “feel good” about themselves, their country, is a measure of that failure.”
—Adrienne Rich (b. 1929)
“Let’s call something a rigid designator if in every possible world it designates the same object, a non-rigid or accidental designator if that is not the case. Of course we don’t require that the objects exist in all possible worlds.... When we think of a property as essential to an object we usually mean that it is true of that object in any case where it would have existed. A rigid designator of a necessary existent can be called strongly rigid.”
—Saul Kripke (b. 1940)