1 result for tag: Real Property


IRS Defines Real Property for Section 1031 Like-Kind Exchanges

The Tax Cuts and Jobs Act (TCJA) tossed an unwanted rule into Section 1031 by forbidding exchanges of personal property. But before we move on, let’s clarify one thing: Section 1031 is not an “exchange,” which is defined by Merriam-Webster as a trade. In a tax code 1031 exchange, you generally would: Engage an intermediary to handle the money and the tax paperwork; Sell your real property; and Buy the replacement property So you are buying and selling, but when you do this under the Section 1031 tax rules, you don’t pay taxes on the sale. Pretty sweet, huh? You are not off the hook. You can look at it this way: with the ...