Senior Tax Manager Joe Mecagni wrote about 1031 exchanges for the New England Real Estate Journal.

Excerpt:

In a Section 1031 exchange, no gain or loss is recognized on the exchange of property held for productive use in a trade or business or for investment, if such property is exchanged solely for property of like kind which is to be held either for productive use in a trade or business or for investment.

To qualify for a like -kind exchange, properties must be like-kind and held for use in a trade or business, or for investment. Like-kind property must be of the same character, nature or class. Property such as a primary residence, second home, vacation home, or a property used primarily for personal use does not qualify for like-kind exchange treatment.

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