Reverse Section 1031 Exchange

Summary

This practice note discusses reverse exchanges under Section 1031 of the Internal Revenue Code (I.R.C.). 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. Reverse exchanges, which are types of real property 1031 exchanges, will be discussed in greater detail in this practice note.