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 sometimes feel a great ennui, profound emptiness, doubts which sneer in my face in the midst of the most spontaneous satisfactions. Well, I would not exchange all that for anything, because it seems to me, in my conscience, that I am doing my duty, that I am obeying a superior fatality, that I am following the Good and that I am in the Right.”
—Gustave Flaubert (1821–1880)
“Perhaps it is a universal truth that the loss of liberty at home is to be charged to provisions against danger, real or pretended, from abroad.”
—James Madison (1751–1836)
“A few days later the younger son gathered all he had and traveled to a distant country, and there he squandered his property in dissolute living.”
—Bible: New Testament, Luke 15:13.