Like Kind Exchanges Flashcards
1
Q
Definition of LK exchange
A
Taxpayer exchanges prop for other prop- usually a recognition event unless a non recongition event applies (1031)
2
Q
1031- Lk Exchanges requirements
A
- Exchanged prop be of like kind
- Not exclucded under 1031 (a) (2)
- Holding requiremtns are met– for bus/inve/trade
- No boot
3
Q
if there is boot
A
not fatal- but must recognize this amount
4
Q
cant avoid boot by having other person asssume debt becuase
A
gets accounted for when calculating basis- we treat it as cash for 1031 bases.
5
Q
basis calculation
A
exchange basis+ gain rec. on exchange- boot received =1031d basis
6
Q
deferred exchanges are the
A
msot commom
7
Q
deferred exchanges creates
A
legal strawmen
8
Q
deferred time frame
A
180 days
