Section 1031 Internal Revenue Code

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.

Section 1031 internal revenue code. On june 11 2020 the irs released proposed regulations for like kind exchanges under internal revenue code the code section 1031 to incorporate the tax cuts and jobs act tcja changes. Prior to the tcja both real property and personal property were eligible for like kind exchange treatment. 1031 states the recognition rules for realized gains or losses that arise as a result of an exchange of like kind property held for productive use in trade or business or for investment.

Section 1031 a of the internal revenue code 26 u s c. Internal revenue code section 1031 basics irc 1031. What is section 1031.

Paragraph 2 d of section 1031 a of the internal revenue code of 1986 as amended by subsection a shall not apply to any exchange of an interest as general partner pursuant to a plan of reorganization of ownership interest under a contract which took effect on march 29 1984 and which was executed on or before march 31 1984 but only if all the exchanges contemplated by the reorganization plan are completed on or before december 31 1984.