[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-1-en-105":3,"doc-detail-303356-en":53,"doc-seo-303356-105":75},{"code":4,"msg":5,"data":6},0,"success",[7,14,19,24,29,34,39,44,49],{"id":8,"doc_module":9,"doc_module_name":10,"category_name":11,"show_sort_weight":12,"slug":13},11,1,"Template","Presentations",90,"presentations",{"id":15,"doc_module":9,"doc_module_name":10,"category_name":16,"show_sort_weight":17,"slug":18},12,"Resumes",80,"resumes",{"id":20,"doc_module":9,"doc_module_name":10,"category_name":21,"show_sort_weight":22,"slug":23},14,"Invoices",70,"invoices",{"id":25,"doc_module":9,"doc_module_name":10,"category_name":26,"show_sort_weight":27,"slug":28},15,"Posters",60,"posters",{"id":30,"doc_module":9,"doc_module_name":10,"category_name":31,"show_sort_weight":32,"slug":33},16,"Social Media",50,"social-media",{"id":35,"doc_module":9,"doc_module_name":10,"category_name":36,"show_sort_weight":37,"slug":38},17,"Forms",40,"forms",{"id":40,"doc_module":9,"doc_module_name":10,"category_name":41,"show_sort_weight":42,"slug":43},18,"Letters",30,"letters",{"id":45,"doc_module":9,"doc_module_name":10,"category_name":46,"show_sort_weight":47,"slug":48},21,"Paper Templates",5,"papers-templates",{"id":50,"doc_module":9,"doc_module_name":10,"category_name":51,"show_sort_weight":4,"slug":52},158,"General","general-158",{"code":4,"msg":5,"data":54},{"doc_id":55,"user_id":56,"nickname":57,"user_avatar":58,"doc_module":9,"category_id":40,"category_name":41,"doc_title":59,"doc_description":60,"doc_content":61,"file_id":62,"file_url":63,"file_type":64,"file_size":65,"view_count":66,"is_deleted":4,"is_public":9,"is_downloadable":9,"audit_status":9,"page_count":67,"language":68,"language_code":69,"site_id":70,"html_lang":69,"table_of_contents":71,"faqs":72,"seo_title":73,"seo_description":60,"update_tm":74,"read_time":66},303356,1649267921044,"Ava Thompson","https://us-avatar.wpscdn.com/avatar/1800007509477c92dfb?_k=1786009248482753345","Like-Kind Exchanges Under IRC Section 1031 - FS-2008-18 - February 2008","Like-kind exchanges under IRC Section 1031 allow taxpayers to postpone tax on gains when proceeds from selling business or investment property are reinvested in similar (like-kind) property as part of a qualifying exchange. The guidance explains that any deferred gain is not tax-free, outlines exchange structures including simultaneous, deferred, and reverse exchanges, and describes eligibility, like-kind requirements, exclusions, and strict identification (45 days) and completion (180 days) time limits.","| Media Relations Office | Washington, D.C. | Media Contact: 202.622.4000 |\n| --- | --- | --- |\n| [www.irs.gov/newsroom](www.irs.gov/newsroom) |  | Public Contact: 800.829.1040 |\n\nLike-Kind Exchanges Under IRC Section 1031  \nFS-2008-18, February 2008  \nWASHINGTON—Whenever you sell business or investment property and you have a gain, you generally have to pay tax on the gain at the time of sale. IRC Section 1031 provides an exception and allows you to postpone paying tax on the gain if you reinvest the proceeds in similar property as part of a qualifying like-kind exchange. Gain deferred in a like-kind exchange under IRC Section 1031 is tax-deferred, but it is not tax-free.  \nThe exchange can include like-kind property exclusively or it can include like-kind property along with cash, liabilities and property that are not like-kind. If you receive cash, relief from debt, or property that is not like-kind, however, you may trigger some taxable gain in the year of the exchange. There can be both deferred and recognized gain in the same transaction when a taxpayer exchanges for like-kind property of lesser value.  \nThis fact sheet, the 21st in the Tax Gap series, provides additional guidance to taxpayers regarding the rules and regulations governing deferred like-kind exchanges.  \nWho qualifies for the Section 1031 exchange?  \nOwners of investment and business property may qualify for a Section 1031 deferral. Individuals, C corporations, S corporations, partnerships (general or limited), limited liability companies, trustsand any other taxpaying entity may set up an exchange of business or investment properties for business or investment properties under Section 1031.  \nWhat are the different structures of a Section 1031 Exchange?  \nTo accomplish a Section 1031 exchange, there must be an exchange of properties. The simplest type of Section 1031 exchange is a simultaneous swap of one property for another.  \nDeferred exchanges are more complex but allow flexibility. They allow you to dispose of property and subsequently acquire one or more other like-kind replacement properties.  \nTo qualify as a Section 1031 exchange, a deferred exchange must be distinguished from the case of a taxpayer simply selling one property and using the proceeds to purchase another property (which is a taxable transaction) . Rather, in a deferred exchange, the disposition of the relinquished property and acquisition of the replacement property must be mutually dependent parts of an integrated transaction constituting an exchange of property. Taxpayers engaging in deferred exchanges generally use exchange facilitators under exchange agreements pursuant to rules provided in the Income Tax Regulations. .  \nA reverse exchange is somewhat more complex than a deferred exchange. It involves the acquisition of replacement property through an exchange accommodation titleholder, with whom it is parked for no more than 180 days. During this parking period the taxpayer disposes of its relinquished property to close the exchange.  \nWhat property qualifies for a Like-Kind Exchange?  \nBoth the relinquished property you sell and the replacement property you buy must meet certain requirements.  \nBoth properties must be held for use in a trade or business or for investment. Property used primarily for personal use, like a primary residence or a second home or vacation home, does not qualify for like-kind exchange treatment.  \nBoth properties must be similar enough to qualify as \"like-kind.\" Like-kind property is property of the same nature, character or class. Quality or grade does not matter. Most real estate will be like-kind to other real estate. For example, real property that is improved with a residential rental house is like-kind to vacant land. One exception for real estate is that property within the United States is not like-kind to property outside of the United States. Also, improvements that are conveyed without land are not of like kind to land.  \nReal property ","cbCaimY34oZHkGZ7","https://ap.wps.com/l/cbCaimY34oZHkGZ7","pdf",39176,2,4,"English","en",105,"# Like-Kind Exchanges Under IRC Section 1031\n## Tax treatment and basic concept\n## Who qualifies for the Section 1031 exchange?\n## Different structures of a Section 1031 Exchange\n## What property qualifies for a Like-Kind Exchange?\n## Time limits for a Section 1031 Deferred Like-Kind Exchange","[{\"question\":\"Does a Section 1031 like-kind exchange make gains tax-free?\",\"answer\":\"No. Gain deferred in a like-kind exchange under IRC Section 1031 is tax-deferred, not tax-free.\"},{\"question\":\"What types of exchanges qualify under Section 1031?\",\"answer\":\"A Section 1031 exchange can be simultaneous, deferred, or reverse. Deferred and reverse exchanges have additional complexity and specific requirements.\"},{\"question\":\"What are the key deadlines for a deferred like-kind exchange?\",\"answer\":\"You generally have 45 days to identify replacement properties in writing, and you must complete the exchange and receive replacement property no later than 180 days after the sale (or earlier if it falls before the due date of the tax return with extensions).\"}]","Like-Kind Exchanges Under IRC Section 1031 - FS-2008-18 - February 2008 | PDF",1789802488,{"code":4,"msg":76,"data":77},"ok",{"site_id":70,"language":69,"slug":78,"title":59,"keywords":79,"description":60,"schema_data":80,"social_meta":134,"head_meta":136,"extra_data":138,"updated_unix":139},"like-kind-exchanges-under-irc-section-1031-fs-2008-18-february-2008","",{"@graph":81,"@context":133},[82,96,116],{"@type":83,"itemListElement":84},"BreadcrumbList",[85,89,91,94],{"item":86,"name":87,"@type":88,"position":9},"https://docshare.wps.com","Home","ListItem",{"item":90,"name":10,"@type":88,"position":66},"https://docshare.wps.com/template/",{"item":92,"name":41,"@type":88,"position":93},"https://docshare.wps.com/template/letters/",3,{"item":95,"name":59,"@type":88,"position":67},"https://docshare.wps.com/template/like-kind-exchanges-under-irc-section-1031-fs-2008-18-february-2008/303356/",{"url":95,"name":59,"@type":97,"image":98,"author":103,"headline":59,"publisher":105,"fileFormat":108,"inLanguage":69,"description":60,"dateModified":109,"datePublished":110,"encodingFormat":108,"isAccessibleForFree":111,"interactionStatistic":112},"DigitalDocument",{"url":99,"@type":100,"width":101,"height":102},"https://docshare.wps.com/thumbnails/like-kind-exchanges-under-irc-section-1031-fs-2008-18-february-2008/303356.png","ImageObject",442,249,{"name":57,"@type":104},"Person",{"url":86,"name":106,"@type":107},"DocShare","Organization","application/pdf","2026-09-25","2026-09-19",true,{"@type":113,"interactionType":114,"userInteractionCount":66},"InteractionCounter",{"@type":115},"ViewAction",{"@type":117,"mainEntity":118},"FAQPage",[119,125,129],{"name":120,"@type":121,"acceptedAnswer":122},"Does a Section 1031 like-kind exchange make gains tax-free?","Question",{"text":123,"@type":124},"No. Gain deferred in a like-kind exchange under IRC Section 1031 is tax-deferred, not tax-free.","Answer",{"name":126,"@type":121,"acceptedAnswer":127},"What types of exchanges qualify under Section 1031?",{"text":128,"@type":124},"A Section 1031 exchange can be simultaneous, deferred, or reverse. Deferred and reverse exchanges have additional complexity and specific requirements.",{"name":130,"@type":121,"acceptedAnswer":131},"What are the key deadlines for a deferred like-kind exchange?",{"text":132,"@type":124},"You generally have 45 days to identify replacement properties in writing, and you must complete the exchange and receive replacement property no later than 180 days after the sale (or earlier if it falls before the due date of the tax return with extensions).","https://schema.org",{"og:url":95,"og:type":135,"og:title":59,"og:site_name":106,"og:description":60},"article",{"robots":137,"canonical":95},"index,follow",{"doc_id":55,"site_id":70},1790323878]