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:
“Let every woman ask herself: “Why am I the slave of man? Why is my brain said not to be the equal of his brain? Why is my work not paid equally with his? Why must my body be controlled by my husband? Why may he take my labor in the household, giving me in exchange what he deems fit? Why may he take my children from me? Will them away while yet unborn?” Let every woman ask.”
—Voltairine Decleyre (1866–1912)
“Children, dear and loving children, can alone console a woman for the loss of her beauty.”
—Honoré De Balzac (1799–1850)
“No man acquires property without acquiring with it a little arithmetic, also.”
—Ralph Waldo Emerson (1803–1882)