1031 exchange
Definition
An exchange, i.e. sale and reinvestment of the proceeds therefrom, of business or investment property for like-kind business or investment property, which allows a seller to defer payment of capital gains taxes.
Illustrative caselaw
See, e.g. Teruya Bros., Ltd. v. C.I.R., 580 F.3d 1038 (9th Cir. 2009).
See also
Definition from Nolo’s Plain-English Law Dictionary
A method of selling business or investment property but deferring payment of capital gains taxes by reinvesting the proceeds of the sale in another business or investment property.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:27 pm
