Warning: 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 unfavorable in the case of a realized loss. None of the loss will be recognized regardless of boot received.
Read more about this topic: Internal Revenue Code Section 1031
Famous quotes containing the words exchange, loss and/or property:
“If mass communications blend together harmoniously, and often unnoticeably, art, politics, religion, and philosophy with commercials, they bring these realms of culture to their common denominator—the commodity form. The music of the soul is also the music of salesmanship. Exchange value, not truth value, counts.”
—Herbert Marcuse (1898–1979)
“Love seeketh only self to please,
To bind another to its delight,
Joys in another’s loss of ease,
And builds a Hell in Heaven’s despite.”
—William Blake (1757–1827)
“If property had simply pleasures, we could stand it; but its duties make it unbearable. In the interest of the rich we must get rid of it.”
—Oscar Wilde (1854–1900)