| IRS
Definition Of Like Kind
Generally, if
you exchange business or investment property
solely for business or investment property
of a like-kind, no gain or loss is
recognized under Internal Revenue Code
Section 1031. If, as part of the exchange,
you also receive other (not like-kind)
property or money, gain is recognized to the
extent of the other property and money
received, but a loss is not recognized.
Section 1031
does not apply to exchanges of inventory,
stocks, bonds, notes, other securities or
evidence of indebtedness, or certain other
assets.
Like-Kind Property
Properties
are of like-kind, if they are of the same
nature or character, even if they differ in
grade or quality. Personal properties of a
like class are like-kind properties.
However, livestock of different sexes are
not like-kind properties. Also, personal
property used predominantly in the United
States and personal property used
predominantly outside the United States are
not like-kind properties.
Real
properties generally are of like-kind,
regardless of whether the properties are
improved or unimproved. However, real
property in the United States and real
property outside the United States are not
like-kind properties |