{"id":35274,"date":"2008-03-26T16:35:41","date_gmt":"2008-03-26T21:35:41","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/uncategorized\/like-kind-exchanges.html"},"modified":"2008-03-26T16:35:41","modified_gmt":"2008-03-26T21:35:41","slug":"like-kind-exchanges","status":"publish","type":"corporate","link":"https:\/\/corporate.findlaw.com\/law-library\/like-kind-exchanges.html","title":{"rendered":"Like-Kind Exchanges"},"content":{"rendered":"<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    <p><em>This article was edited and reviewed by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\" rel=\"noopener\">FindLaw Attorney Writers<\/a><\/em><\/p>\n\n                | Last reviewed\n        <time>\n                            May 13, 2026\n                    <\/time>\n    <\/div>\n\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\" rel=\"noopener\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\" rel=\"noopener\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\" rel=\"noopener\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n\n\n\n<div class=\"rxbodyfield\" xmlns:o=\"urn:www.microsoft.com\/office\" xmlns:st1=\"urn:www.microsoft.com\/smarttags\" xmlns:w=\"urn:www.microsoft.com\/word\" xmlns:x=\"urn:www.microsoft.com\/excel\"><p>Like-kind exchanges are a popular method of deferring taxes on the disposition of business or investment property, especially real estate. Fortunately for taxpayers, recent proposals to restrict like-kind exchanges were not included in the recent tax bill. The following are some rules of thumb for like-kind exchanges:<\/p><ul><li>Virtually any business or investment real estate will be like-kind with any other business or investment real estate.<\/li><li>Taxpayers may recognize gain, even in a valid &#167;1031 exchange, to the extent of &quot;boot&quot; received. Generally, a taxpayer will have received boot if: <ol type=\"1\"><li>the taxpayer receives property of less value than the sales price of the relinquished property, less selling expenses; or<\/li><li>the taxpayer acquires less equity in the replacement property than he had in the relinquished property.<\/li><\/ol><\/li><li>Deferred exchanges using a qualified intermediary are commonly performed. The tax code and regulations set forth a detailed set of &quot;safe harbors&quot; under which deferred exchanges will qualify under &#167;1031. Some important aspects of deferred exchanges are: <ol type=\"1\"><li>Replacement property must be identified in writing within 45 days of the closing on the relinquished property.<\/li><li>The taxpayer must receive the replacement property by the earlier of the 180th day after the closing on the relinquished property or the due date (including extensions) of the taxpayer&#39;s return for the year in which the relinquished property is transferred.<\/li><li>Many title companies will act as qualified intermediaries. A formal exchange agreement should be entered into which will document the intent of the parties and exonerate the intermediary from any liability.<\/li><li>The taxpayer can search and enter into contracts for replacement property. The contracts will be assigned to the qualified intermediary.<\/li><li>Property can be &quot;direct deeded&quot; so that the intermediary does not enter into the chain of title.<\/li><\/ol><\/li><\/ul><\/div>","protected":false},"excerpt":{"rendered":"<p>Like-kind exchanges are a popular method of deferring taxes on the disposition of business or investment property, especially real estate. Fortunately for taxpayers, recent proposals to restrict like-kind exchanges were not included in the recent &#8230;<\/p>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_categories":[6497,6519],"class_list":["post-35274","corporate","type-corporate","status-publish","hentry","corporate_categories-law-library","corporate_categories-law-library__wills-trusts-probate-law"],"acf":[],"_links":{"self":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate\/35274","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate"}],"about":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/corporate"}],"wp:attachment":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=35274"}],"wp:term":[{"taxonomy":"corporate_categories","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_categories?post=35274"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}