Taxing Cryptocurrencies: The Applicability of Like-Kind Exchange Tax DeferralMills, AmyReview of Banking & Financial Law
A Like-Kind Exchange, also known as a 1031 exchange (referencing the IRS code section), is a transaction that allows individuals and businesses to defer capital gains taxes when exchanging similar types of property. The term “like-kind” refers to the nature or character of the property being...
Deferred and reverse exchanges Computershare acts as the Qualified Intermediary who receives and holds the exchange proceeds generated by the sale of the relinquished property. In a typical tax-deferred like-kind exchange, the taxpayer sells business or investment property and then acquires replacement ...
Tax Reform Update:Generally, only real property now qualifies under the like-kind exchange rules. See the instructions for exceptions. Certain exchanges of property are not taxable. This means any gain from the exchange is not recognized, and any loss cannot be deducted. ...
1031 Exchanges Main Content Fargo 1031 Exchanges No matter how big or small your investment property, a 1031 exchange may be a good option for you. Reach out to our Fargo like-kind exchange intermediaries to learn more. Start Your Exchange...
Impose Capital Gain Tax on Like-Kind Exchangestax reformlike-kind exchangesThe proposal would repeal nonrecognition of gain that current law allows for like-kind exchanges. Nonrecognition was first adopted to avoid the difficulties of valuation, but under modern broker transactions, valuation is not ...
Under U.S. tax law, a like-kind exchange, also known as a 1031 exchange, is an asset transaction that does not generate a tax liability from the sale of an asset when it was sold to acquire a replacement asset. While it was clear that taxpayers could not claim crypto-to-crypto sales...
Like-kind exchange tax assumptions: Treatment doesn’t follow IRS notice 2000-4 or Reg. 1.168(i)-6When setting up a replacement asset for a like-kind exchange, the application determines if the replacement asset is a MACRS or a non-MACRS asset. The appli...
Use Form 8824 to report “like-kind exchanges,” that is, when you immediately buy a similar property to replace one you sold. While a like-kind exchange doesn’t eliminate your taxes, it can defer them; the cost basis from your original property is transferred to the new pro...
The most glaring benefit of a like-kind exchange is thefavorable tax treatment. Under this exchange, an asset can be replaced with a like-kind asset without triggering a taxable event. The exchange need not be with an asset identical to the one being replaced; it must be in the same asse...