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In ordinary words.
A real-estate investor may postpone tax on a gain by exchanging one investment property for another.
In legal terms.
Internal Revenue Code § 1031 generally permits nonrecognition for qualifying exchanges of real property held for business or investment.
Where it stops being legal.
Personal residences, most personal property, missed deadlines and cash received may disqualify or partly tax the deal.
General U.S.-focused information. Cases and statutes may have jurisdiction-specific exceptions. This citation may be a general primer; verify the governing primary authority. Not legal advice.