Section 1031 Of The Us Internal Revenue Code

Paragraph 2 d of section 1031 a of the internal revenue code of 1986 formerly i r c.

Section 1031 of the us internal revenue code.

1954 as amended by subsection a shall not apply in the case of any exchange pursuant to a binding contract in effect on march 1 1984 and at all times thereafter before the exchange. Section 1031 is also. Under section 1031 of the united states internal revenue code 26 u s c. Section 1031 is a provision of the internal revenue code irc that allows business or investment property owners to defer federal taxes on some exchanges of real estate.

1031 a taxpayer may defer recognition of capital gains and related federal income tax liability on the exchange of certain types of property a process known as a 1031 exchange in 1979 this treatment was expanded by the courts to include non simultaneous sale and purchase of real estate a process sometimes called a. D basis if property was acquired on an exchange described in this section section 1035 a section 1036 a or section 1037 a then the basis shall be the same as that of the property exchanged decreased in the amount of any money received by the taxpayer and increased in the amount of gain or decreased in the amount of loss to the taxpayer that was recognized on such exchange.