1031
Business & Finance abbreviation · Tax
| Stands for | Like-kind exchange (Internal Revenue Code section 1031) |
|---|---|
| Categories | Business & Finance |
1031 stands for Like-kind exchange (Internal Revenue Code section 1031), a tax abbreviation.
Tax-deferral technique that lets an owner of investment or business real estate sell it and reinvest the proceeds in another qualifying property without paying capital gains tax at the time. The replacement must be identified within 45 days and acquired within 180 days of the sale.
Example: We used a 1031 to trade the duplex for a small apartment building.
Usage notes
Like-kind exchanges have been in the tax code since 1921. The 2017 tax law limited them to real property, ending exchanges of equipment, vehicles and artwork. Proceeds must be held by a qualified intermediary; cash or other non-like-kind value received, called "boot," is taxable. If the owner holds until death, heirs receive a stepped-up basis and the deferred gain can disappear entirely.
Related abbreviations
More tax abbreviations
- 1040 – U.S. Individual Income Tax Return (IRS Form 1040)
- 1040-ES – Estimated Tax for Individuals (IRS Form 1040-ES)
- 1040-NR – U.S. Nonresident Alien Income Tax Return (IRS Form 1040-NR)
- 1040-SR – U.S. Tax Return for Seniors (IRS Form 1040-SR)
- 1040-X – Amended U.S. Individual Income Tax Return (IRS Form 1040-X)
- 1041 – U.S. Income Tax Return for Estates and Trusts (IRS Form 1041)
- 1065 – U.S. Return of Partnership Income (IRS Form 1065)
- 1095-A – Health Insurance Marketplace Statement (IRS Form 1095-A)
- 1098 – Mortgage Interest Statement (IRS Form 1098)
- 1098-E – Student Loan Interest Statement (IRS Form 1098-E)
- 1098-T – Tuition Statement (IRS Form 1098-T)
- 1099 – IRS Form 1099 information return series