Real Property 1031 Exchanges

Summary

This practice note discusses exchanges of real property under Section 1031 of the Internal Revenue Code (IRC). Section 1031 provides that no gain or loss will be recognized when real property held for productive use in trade or business, or for investment, is exchanged for like-kind real property, which will also be held for productive use in trade or business, or for investment. Generally, for exchanges completed after December 31, 2017, the law provides that this nonrecognition does not apply to exchanges of real property held primarily for sale.