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 can exchange opinion with any neighbouring mind,
I have as healthy flesh and blood as any rhymer’s had,
But O! my Heart could bear no more when the upland caught the wind;
I ran, I ran, from my love’s side because my Heart went mad.”
—William Butler Yeats (1865–1939)
“The universal social pressure upon women to be all alike, and do all the same things, and to be content with identical restrictions, has resulted not only in terrible suffering in the lives of exceptional women, but also in the loss of unmeasured feminine values in special gifts. The Drama of the Woman of Genius has too often been a tragedy of misshapen and perverted power.”
—Anna Garlin Spencer (1851–1931)
“Things have their laws, as well as men; and things refuse to be trifled with. Property will be protected.”
—Ralph Waldo Emerson (1803–1882)