This is one of the most common questions asked of a qualified intermediary.The answer: Qualifying property under §1031 must be held by the taxpayer for “productive use in a trade or business, or for investment.” The determination of whether property is held for productive use in a trade or business or for investment is made as of the time of the exchange.
For quite some time, the interaction of §121 (exclusion of gain on the sale of a principle residence) and §1031 (non-recognition of gain or loss in like-kind exchanges) has confused many taxpayers. Fortunately, the Internal Revenue Service has provided clear guidance on this matter with Revenue Procedure 2005-14.
As of April 6, 2020 — Wilmington Trust has been monitoring the COVID-19 (coronavirus) outbreak and assessing its impact on investments and the economy. Visit this page for updates as further developments unfold. What COVID-19 health and wealth impacts lie ahead? Listen to the replay of our recent webinar, “COVID-19: Fiscal, Monetary & Medical Shots in the Arm?,” with Chief Investment Officer Tony Roth and special guest, Ashish K.