06746. The 1031 exchange can be particularly helpful if you want. Example and Explanation of the Like-Kind Exchange Analysis: A rental property has a selling price of $500,000 and will have selling costs of $40,000. 90% of Listing Price – All Liens = Estimated Proceeds. 1031 Exchange Examples | 2023 Like Kind Exchange Example - 1031 Like Kind Exchange Calculator - Excel WorksheetI just finished my taxes but not sure if these calculations are correct. 1031. The truth is the IRS considers any deeded property that you don’t live in and is purchased for investment purposes qualifies as “like-kind. Continuing with the example, assume you have taken $100,000. This generally requires a reciprocal transfer of property between two parties. Example 1. We tried to find some amazing references about 1031 Like Kind Exchange Worksheet And Form 8824 Worksheet Template for you. Estimate Your 45-day and 180-Day Deadlines. Web download the free like kind exchange worksheet. If the exchange isn’t completed within that time frame, it’s considered invalid. $606,625. Like Kind Exchange Calculator If you exchange either business or investment property that is of the same nature or character, the IRS won't recognize it as a gain or loss. This calculator is designed to calculate and the recognized loss, gain and the basis for a Like Kind Exchange. Ok, so I need to know how the taxable basis is determined in a partial 1031 (like kind) exchange. Enter the smaller of line 1 or line 2 here. The results of combining the two tax-deferral methods are a gain deferral from the section 1031 exchange of $2 million and an increase of $50,000 in depreciation deductions in the current year, resulting in reduced taxes of nearly $20,000, assuming a. The new property has Building (27. If you are an investor and considering selling your investment property and purchasing another, you may want to do a like-kind exchange. You can’t recognize a loss. 25 * total deferred gains of $500,000 = $125,000. Here are some of the notable rules, qualifications and requirements for like-kind exchanges. However, we recognize that almost all Exchanges are different and that. Learn more about simple formulas. Se. Web get a like kind. You used the entire property as a vacation home or rental after 2008 or you used a portion of the home, separate from the living area, for business or rental purposes. or foreign) is a. On the summary Form 8824, enter only your name and identifying number, "Summary" on line 1, the total recognized gain from all exchanges on line 23, and the total basis of all like-kind property received on line 25. 2019-2020 Like-Kind Exchange Updates. Open the template in the online editing tool. A 1031 exchange is reported on IRS Form 8824 along with the normal tax return only when the exchange is completed. Colorful, interactive, simply the best financial calculators! Web exchange basics & requirements exchange variations like kind property issues tax law updates additional 1031 exchange issues purchase 1031 exchange books. 420 W. The amount on Line 25 of Form 8824 is the basis you would use to enter the acquired asset for depreciation purposes. Cheat Code in Excel I use to answer Like-Kind exchange questions. Automatically create sample worksheets of IRS Form 8824. Existing Regs. About. (1) Federal Capital Gains equal to Realized Gain less depreciation taken multiplied by the applicable rate. 1. You own a $3,000,000 investment property with a tax basis of $2,600,000 — meaning that you have a $400,000 capital gain. A 1031 exchange doesn’t make capital gains tax go away; it. Select the destination cell, and press Ctl+V. 1031 (a)-1 (b). The property cost $150,000 when purchased ten years ago. Enter your official contact and identification details. com’s list of financial calculators. com Check Details. Enter the following information and our calculator will provide you an idea of how a 1031 exchange will work in your situation. To use the Stocks data type in Microsoft Excel, you only need an internet connection and a bit of your own data to start. (2023 amounts) The Net Investment Income (NII) tax is applicable when the Taxpayer’s “Adjusted Gross Income” exceeds $200,000 for a single Taxpayer or. Estimate the realized and recognized gains to calculate the transfer basis. Source: db-excel. Instead, the replaced property receives the carryover basis of the exchanged property. Calculating taxes due upon sale vs 1031 exchange as a starting point, a. Treas. EXCHANGES SOLELY FOR PROPERTY OF LIKE KIND . Excel is an obvious tool for our day-to-day activities. Note. Use the Currencies data type to calculate exchange rates. Jen owns a $300,000 investment property free and clear. You can also check how the values were changing within a given period. Web what form is a like kind exchange reported on?. Export Customs formalities fixed cost. There was another agreement for 12. Both can affect your taxes. Select the cells and then select Insert > Table . A 1031 exchange doesn’t make capital gains tax go away; it. You choose to sell your current property with a $150,000 mortgage on it. ” According to the IRS, like-kind exchanges are “real property used for business or held as an investment [exchanged] solely for other business or investment property that is the same type. A 1031 exchange can help you defer capital gains taxes on investment property, but the rules are complicated. There are two categories of boot, mortgage boot or cash boot. Realized Gain, Recognized Gain and Basis of Like-Kind Property Received. How to calculate an installment sale; How has the Tax Cuts and Jobs Act impacted the use of the Installment Sale Method; What is a like-kind exchange as defined by IRC Section 1031; When can a taxpayer utilize the provisions of IRC Section 1031; What types of real property are eligible for like-kind exchange treatment and what types are notLike-kind exchanges are transactions in which two parties exchange assets of a similar nature without incurring tax liabilities. Example #2 – Use Cell References. §1031 (like-kind exchanges)). Present Value of Annuity = $90,770. 44; Since you have $15,000 with you and you only need $13,492. Colorful, interactive, simply The Best Financial Calculators! This 1031 Exchange calculator will estimate the taxable impact of your proposed sale and purchase. , cash, notes, or personal property not replaced). There are four types of 1031 exchanges, but the most common type is a delayed exchange. Apply the Currencies Data Type. Information on the Like-Kind Exchange. ”. | Website CalculatorLike Kind Tax Deferred Exchange Calculator. For information on like-kind exchanges, please see IRS Publication 544 Sales and Other Dispositions of Assets. . Like-Kind Property in a 1031 Exchange. Using a 1031 tax-deferred exchange requires advance planning. Like kind property is defined in IRC §1031, which is why such exchanges are often called §1031 exchanges. These calculations are estimates for the purpose of demonstration. comWorksheet exchange kind 1031 worksheets nar exchanges realtor field library guide spreadsheet excel rent sell 1031 like kind exchange worksheetExchange. IRA and 401K Rollover. To enter a like-kind exchange in TaxSlayer Pro, from the Main Menu of the tax return (Form 1040) select: Income. If our desired currency is USD, we have set our exchange rate as 1. not a sale. Currency Converter Template Features: This spreadsheet allows you to check the life value of most currencies. This calculator will help you to determine the tax deferment you will realize by performing a 1031 section like-kind exchange rather than a taxable real estate sale. Reverse 1031 exchange fees and costs. If the final replacement property is transferred in the next. This calculator is designed to calculate recognized loss, gains and the basis for your newly received property. 9%, additional dollars to use in the acquisition of a future property. If the like-kind exchange involves the receipt of money or unlike property or the assumption of your liabilities, see Partially Nontaxable Exchanges, later. The IRS considers all “Investment Properties” to be “Like-Kind. 102,000. ”. 5 million. I am having tangle reporting the whole edit to TurboTax, in particular of sale of the old rental property. Calculate the taxes you can defer when selling a property. Calculate a percentage of increase. ️1031 exchange worksheet excel free download| gambr. Related-party exchanges present special challenges and the IRS has aggressively gone after “indirect” related-party exchanges. 509 (1960). Welcome back! Ask questions, get answers, also join my huge community from taxi professionals. Example 1: A, a single individual, owned and lived in a residence for six months until its destruction on Dec. Enter that result on line 19. The way to complete the 2002 Form 8824 (Fill-in Version). See full list on mortgagecalculator. To pay no tax when executing a 1031 Exchange, you must purchase at least as much as you sell (Net Sale) AND you must use all of the cash received (Net Cash Received). Pretty easy to memorize and super helpful. Reverse 1031 exchanges are more expensive than conventional 1031 exchanges, with reverse 1031 exchange base fees starting at $3,500. About the Calculator. Include your name and identifying number at the top of each page of the statement. R. This calculator is designed to calculate and the recognized loss, gain and the basis for a Like Kind Exchange. 0. 45 Day Deadline: You have to include prospective like-kind replacement properties prior to midnight on the 45th day after closing on your relinquished property sale transaction. GeorgeM777. The excess liabilities assumed of $7000 is allocated to the exchange group. Select the cell that contains the result from step 2. A 1031 property exchange is a type of “like-kind” exchange that’s permitted under Section 1031 of the U. In addition, you need to borrow a minimum of $150,000 to pay for it. Web like kind exchange worksheet excel. Martin S. Recommended Articles. 75%, which is. We’ll be happy to help you with calculating your 1031 Exchange, please give us a call 215-489-3800. Preview 3 hours ago That's why we're giving you the same 1031 exchange calculator our exchange experts use to help investors find smarter investments. You must write the 2 currency codes in the same cell. Learn the latest tax rules governing like-kind exchanges. Note: Only real property should be described on lines 1 and 2. Check Details 30 1031 exchange calculation worksheet. Cash Boot Example. This calculator is designed to calculate recognized loss, gains and the basis for your news received land. how you figured the realized and recognized. A definition of the form fields helps in understanding the information needed to accurately estimate your gains and. This calculation considers factors such as the adjusted basis of the relinquished property and the fair market value of the replacement property. 2. Create a. 1031 and 1033 exercise in the following 10311031 exchange rules: 7 irs rules you must follow 39 1031 like kind exchange worksheet1031 exchange: how it. What this means is that exchangers have the opportunity to purchase replacement property of any type. Like-Kind Exchange Depreciation OptionsPress F2 (or double-click the cell) to enter the editing mode. Web like kind exchange worksheet 1031 exchange calculator excel. In fact, all real estate is “like-kind” to all other. This sounds like they need to be similar in type, but the IRS defines like-kind broadly. Click on the second tab to calculate the 45 & 180 day property exchange deadlines. (2023 amounts) The Net Investment Income (NII) tax is applicable when the Taxpayer’s “Adjusted Gross Income” exceeds $200,000 for a single Taxpayer or. -30,831. Open your spreadsheet and type a piece of information, like a company name or stock symbol. This calculator is designed to calculate recognized loss, gains. Includes state taxes and depreciation recapture. Realized Gain, Recognized Gain and Basis of Like-Kind Property Received. The three primary 1031 exchange rules to follow are: Replacement property should be of equal or greater value to the one being sold. (1) The exchange group has an exchange group surplus of $1000 because the. We can largely bank on Excel for a myriad of purposes that involve calculations. For the like-kind exchange of an aggregate asset or for a mass trade, each treatment must calculate. If a calculation is done before the Like-Kind exchange is complete, it can affect the outcome of the new asset the system creates when the automatic sale feature is used. Like kind exchange worksheet — db-excel. We hope you can find what you need here. ” If the transaction involved personal property, add. Contact Info. Here’s an example of how to calculate the cost basis of your cryptocurrency: Take the initial investment amount (let’s assume it is $1000). Normally, when a taxpayer sells property, gain or loss on the sale is recognized in the tax year in which the sale occurs. Existing Regs. In a 1031 Exchange, “ boot ” is defined as the fair market value of cash or “other property” received in a 1031 Exchange. Part I of Form 8824 is called “Information on the Like-Kind Exchange” and contains seven lines requesting information about your Exchange. About Our Firm; Meet Our Team; Services. 1031 Treasury Regulations. So you can’t use your real estate broker or agent or a relative to facilitate the. Part I - Information on the Like-Kind Exchange. View Calculator Profit Margin Calculator. If you exchange either business or investment property that is of the same nature or character, the IRS won’t recognize it as a gain or loss. Repetition is the mother of learning! 1031 Like Kind Exchange Worksheet And Form 8824 Worksheet Template. Like-Kind Property: Any two assets or properties that are considered to be the same type, making an exchange between them tax free . No. Web the 1031 exchange, named for section 1031 of the u. But, there are certain scenarios where it may make sense to exchange one property for multiple. Get a Like Kind Tax Deferred Exchange Calculator branded for your website! Colorful, interactive, simply The Best Financial Calculators! If you exchange either business or investment property that is of the same nature or character, the IRS won’t recognize it as a gain or loss. Unfortunately, when the Treasury regulations were written for the tax code relating to Section 1031 Congress excluded stocks, bonds, and other evidences of indebtedness. The main difference is that the property you’re exchanging into (i. Generally, if the exchange meets the requirements of I. We have developed the enclosed worksheets for use in calculating the information used to report 1031 Exchanges on Form 8824 and herein enclose a copy. S. To qualify for a 1031 exchange, the relinquished property and the replacement property must be “like-kind. Other Gains/Loss (4797, 8824) Form 8824 - Like-Kind Exchanges - Click New. By doing this you avoid reporting all of ar at least a portion of the taxable gain of the sale on your current tax return. It sells for $650,000. Colorful, interactive, simply the best financial calculators! Web the crossword solver found 30 answers to like spreadsheets, 7 letters crossword clue. Line 7 minus line 3 10. Like-Kind 1031 Exchange With Boot. Resources. The website that is known for providing free to use financial tools and resources has included the newly added Like-Kind-Exchange calculator under their business tools category. Minnesota 1031 Exchange Company. Click Like-Kind Exchange, and continue with the interview process to. The meaning of LIKE-KIND EXCHANGE is an exchange of business or investment property of the same kind, class, or character and excluding securities that is made pursuant to section 1031 of the Internal Revenue Code and is thus exempt from taxation. Now, if the first logical test returns false, it will go to the second IF, and at the first argument, it will test if the desired currency is EUR. You can still exchange a rental property for another rental property, and defer the gain, but you cannot do the same with. Note that you can see all of the calculations so you can better understand how the final figures were calculated. 1. 24Dear Bill, If you follow all of the IRS rules for a “Reverse 1031 Exchange,” then yes, it is possible to acquire property in a like-kind exchange before selling the property given up. Reporting State Capital Gain 6 . received more than one group of like-kind properties, cash or other (not like-kind) property. Proc. $1,080,000. This 1031 Exchange calculator will estimate the taxable impact of your proposed sale and purchase. Like kind exchange worksheet — db-excel. Depreciation is a tax deduction you take annually to account for wear and tear on the property. Web exchanges limited to real property. For CPA exam purposes there are four calculations that you should understand. s. Purchase price, Exchange Property $ 6 Less depreciation taken to date of sale ( ) 7 Less deferred gain from previous 1031 Exchange (if any) ()8 Net cash paid (same as line 3 above) 9 Net debt incurred (line 31) 10 Less net debt relief (line 30) limited to amount of net cash paid (line 9) ( ) 11 Total to Form 8824 Line 18 $ 12 Ordinarily, when you sell something for more than what you paid to get it, you have a capital gain; when you sell it for less than what you paid, you have a capital loss. Exchange 1031 worksheet kind calculator excel section realized laptop experts investing difficult giving same think should why don re which1031 exchange worksheet excel 1031 spreadsheet exchange tax section power property next deferred profits move looks intoLike kind exchange. Checkpoint Firewall Installation Tour. gain, and enter the correct amount on lines. Open your spreadsheet and type a piece of information, like a company name or stock symbol. , your attorney, your real estate agent, etc. It sells for $650,000. Say I sold Property A for 200k, with 10k closing cost, and 90k mortgage to pay off. Download this excel loan calculator template in pdf online and create a thorough and profession loan calculator file with accurately calculated loans for your business or organization. section 1031, the taxpayer will not be. Sign it in a few clicks. The result is 0. When you exchange or trade property of the same nature or character, it's called a like-kind or Section 1031 exchange, which gets reported on IRS form 8824. Size: 116. We will soon write separately about vehicle depreciation and trades in light of the new law. With a 1031 like-kind exchange, you can sell your investment property, purchase a like-kind property and defer capital gains tax. b. . Instead of using a calculator, use Microsoft Excel to do the math! You can enter simple formulas to add, divide, multiply, and subtract two or more numeric values. Calculate the taxes you can defer when selling a property. Realized Gain, Recognized Gain and Basis of Like-Kind Property Received. Facebook; Youtube;. The taxpayer must actively participate, not act as a limited partner, and own at least ten percent to qualify. This might be obvious, but it’s worth noting: in a 1031 exchange, both the property being sold/exchanged and the property being bought need to be purchased by the same party. Original purchase price ($): Let’s say we’ve decided to sell a property and use the 1031 like-kind exchange to defer taxes. Drop and swap exchanges fill this need. Also, use Part III to figure the basis of the like-kind property received. The capital gain tax on appreciation in value goes up from 15% to 20% when “Taxable Income” exceeds $492,301 (single) or $553,851 (married filing jointly). Like Kind Exchange Calculator. like kind exchange worksheet. My challenges is to know if I am doing it correctly in ProSeries. TAXES DUE (Effective Tax Rate)4. Most like-kind exchanges are four-party arrangements involving a qualified intermediary (QI). Among Business Items, Sale on Business Property, I enter the like-kind exchange information. Commercial property is depreciated over 39 years. Perform "What if" analysis by changing the input. received more than one group of like-kind properties, cash or other (not like-kind) property. The primary form you prepare for a 1031 exchange is Form 8824. Description of like-kind property given up: 2 . At CPEC1031, our qualified intermediaries have decades of experience aiding taxpayers with their like-kind exchanges. 1031 Exchange Calculator. You’re now undertaking a partial 1031 exchange, since you’re not reinvesting all the proceeds from the sale of your relinquished property. For your convenience current Boydton mortgage rates. Ditch stock in a mutual irrigation ditch company acquired with farm land (possible issue). Web web like kind exchange worksheet 1031 exchange calculator excel. Perform "What if" analysis by changing the. Immediately download the 1031 exchange calculator. California’s Form 3840, which is new for the 2014 tax year, is one of the latest developments in the FTB’s focus on scrutinizing like-kind exchanges. Publication 544 explains the tax rules that apply when you dispose of property. On the dotted line next to line 19, enter "Section 121 exclusion" and the amount of the exclusion. In the Expenses section click on the QuickZoom to the Asset Entry Worksheet. FMV of non-like-kind property transferred 7. There are two entries for the same property that was relinquished: 2392 Taproot Court 02/01/2010 05/08/2019 0. Get a Like Kind Exchange Computer branded for your internet! Colorful, interactive, simply The Best Fiscal Calculators! If you handel either business or investment belongings that is of the same nature or character, the IRS won't recognize information as one gain or lost. In a 1031 Exchange, “ boot ” is defined as the fair market value of cash or “other property” received in a 1031 Exchange. Working with her real estate advisor, Kelly found a mixed-use, multi-tenant building near her home, consisting of two apartments, two stores, and three townhouses. This means any gain from the exchange is not recognized, and any loss cannot be deducted. 34,308. 25. Se. , the acquired property) must be factored into the overall exchange’s cost basis. Step 4. This is the primary purpose of Part III and. Excel Formula #4: DateDif – Date Difference. An exchange of multiple properties or assets can be a tax-deferred like-kind exchange. Generally, if the exchange meets the requirements of I. gain, and enter the correct amount on lines. Step 2: Create headers for Multiplication, Summation, Subtraction, and Square Root in row one. ; The basis of the replacement property is $20,000 −. A like-kind exchange is a way to defer your capital gains taxes when selling a piece of business property. In this article, we are going to talk about how to deal with taxable boot in a 1031 exchange. To use the Stocks data type in Microsoft Excel, you only need an internet connection and a bit of your own data to start. While capital-gains tax rates are currently at historical lows, tax rules require you to recapture the portion of the gain on the sale that relates to allowable depreciation over the period the asset was held. Over the course of numerous transactions the geometic growth in capital can be substantial. Certain exchanges of property are not taxable. Web get a like kind exchange calculator branded for your website! Fill in the blanks with like or as. Then your percent change formula takes this form: = (C2-B2)/B2. To apply separate passenger auto limits when electing out of Reg. First let’s calculate our tax basis: Cost to Purchase in 2001 = $135,000; Net Sales Price in 2018 = $225,000; Tax Basis = $90,000; This $90,000 is the amount of capital gains we’ve realized. 25 * total deferred gains of $500,000 = $125,000. Like Kind Exchange Calculator. Date of Sale Day the sale of the received property or property given up captured place. R. After you create a formula, you can copy it. Jen owns a $300,000 investment property free and clear. Like-Kind Exchange Replacement Property Analysis of Tax Basis for Depreciation (pdf). 2000-37, with a slight tweak. 1031 transactions assume exchanges calculate homeworklibWhat is a 1031 exchange? Like kind exchange worksheet form1031 worksheet partial irs related. 1031 exchange calculation worksheetSpreadsheet excel calculator amortization expenses 1031 fmla amortize budgeting naturalbuffdog Like kind exchange worksheet formSolved in the following 1031 exchanges, calculate the. Subtract the total amount of depreciation you have taken on the property from your result to calculate the adjusted basis of the property you are giving up in the like-kind exchange. Boot is a big deal in the realm of 1031 exchanges, but many taxpayers don’t pay enough attention to it, and end up paying the price (literally). 1031 Real Estate Exchange Calculator. Section 1031 of the IRC requires any investment real estate involved in a 1031 exchange to be “like-kind. Continuing with the example, assume you have taken $100,000. But in a like-kind exchange, gain or loss on the sale of. My challenge is to know if IODIN am doing it correctly in ProSeries. Capital gains tax is owed when you sell a non-inventory asset at a higher price than you paid resulting in a realized profit. Watch on. Worksheet April 17, 2018. In this example, the amount is based on $400,000 of depreciation taken. If you exchange either business or investment property that is of the same nature or character, the IRS won't recognize it as a gain or loss. Description of like-kind property given up: 2 . Calculate live currency and foreign exchange rates with the free Xe Currency. When I got complicated MCQ like this, it was "easy" to just type them in and get the answer. 3. Here it is. For example, a taxpayer may identify a hotel it will acquire for $1,000,000 as replacement property, even if the. Web 1031 like kind exchange worksheet and form 8824 worksheet template worksheet april 17, 2018 we tried to get some amazing references about 1031 like. We'll fill out Form 8824 for you. Like-kind exchanges, that is exchanges of property used for business or held as an investment solely for other business or investment property that is the same type or “like-kind", have long been permitted under the Internal Revenue Code. section 1031, the taxpayer will not be. Section 1031 sets specific time periods on the identification and receipts of replacement property. With his 2012 Form 1040, Mr. Like-Kind 1031 Exchange With Boot. The “three-property rule” and the “200% rule” are ALTERNATIVE ways or rules under which to designate or identify the Replacement Property, and you only have to satisfy one of the rules to have a valid 1031 exchange. Description of like-kind property given up: 2 . Example #3 – Cell Reference Formulas are Flexible. Reporting of multi-asset exchanges. If you want to meet the conditions for a 1031 exchange, you much purchase a replacement property for at least $650,000. Like a § 1031 exchange, § 721 exchanges, if structured properly, can enjoy a deferral of capital gains tax. Exchange 1031 worksheet kind calculator excel section realized laptop experts investing difficult giving same think should why don. Activate Data Type. It is important to understand that the receipt of boot does not disqualify the. Instead, attach your own statement showing. If you transferred and received (a) more than. Study with Quizlet and memorize flashcards containing terms like On February 24, 2018, Allison's building, with an adjusted basis of $1,300,000 (and used in her trade or business), is destroyed by fire. com. Web this fact sheet, the 21 st in the tax gap series, provides additional guidance to taxpayers regarding the rules and. 625 million. Basically, we can separate the tool into two different sections. On the next screen, answer Yes and proceed through the interview questions. com Check Details. real property for real property of a like kind. Like-Kind Exchanges - Real Estate Tax Tips. 8989 Rio San Diego Drive #250 San Diego, CA 92108 Phone: (619) 231-1977 Fax: (619) 231-8244. Also, the basislike-kind exchange. real property for real property of a like kind. The property I relinquished in the like-kind exchange is being reported in form 4797, "Sale of Business Property". A 1031 exchange, named after section 1031 of the U. There are several instances in which 1031 like-kind exchange rules intersect with those for installment. one group of like-kind properties or (b) cash. You choose to sell your current property with a $150,000 mortgage on it. To qualify as like kind, two assets must be of the same type (e. If you traded in a business vehicle in 2017 or earlier, you. As mentioned above, when the majority of members wish to cash out, the taxpayer can transfer his membership interest back to the LLC in consideration of his receipt of a deed for a percentage fee interest in the property equivalent to his former membership interest. This calculator is designed to calculate recognized loss, gains and the basis for your newly received property. In contrast, a 1035 transfer allows the tax-free transfer of funds from one life insurance or annuity policy to another, providing policyholders with potential benefits and flexibility in their insurance and investment choices. United States, 363 U. First let’s calculate our tax basis: Cost to Purchase in 2001 = $135,000; Net Sales Price in 2018 = $225,000; Tax Basis = $90,000; This $90,000 is the amount of capital gains we’ve realized. The taxpayer decides to complete a like-kind exchange for. Web Web Like Kind Exchange Worksheet 1031 Exchange Calculator Excel. IRC 1031 Like-Kind Exchange Calculator Home Investing 1031 Exchanges 1031 Exchange Properties If you’re considering performing a 1031 tax exchange instead of a taxable sale of a property, this. No. Description of like-kind property received: 3Like-kind exchanges -- when you exchange real property used for business or held as an investment solely for other business or investment property that is the same type or “like-kind” -- have long been permitted under the Internal Revenue Code. This taxpayer fully depreciated the five-year property components by the time the exchange occurs. com Check Details. To figure the portion of the gain allocated to the period of non-qualified use, see Worksheet 3. When I got complicated MCQ like this, it was "easy" to just type them in and get the answer. Source. Tax Court upholds non-safe-harbor reverse like-kind exchange.