Nonrecognition, Like-Kind Exchange, and Involuntary Conversion Rules

This chapter covers the main nonrecognition and deferral rules in TCP property transactions. The key work is identifying when gain is deferred, when boot forces partial recognition, and how replacement-property basis must be tracked after the transaction.

In This Chapter

• Section 1031 Like-Kind Exchange Timelines, Real Estate Scope, and Intermediaries explains what still qualifies for like-kind exchange treatment and how timing rules work.
• Section 1033 Involuntary Conversions, Replacement Periods, and Condemnation Awards covers gain deferral when property is destroyed, condemned, or otherwise involuntarily converted.
• Boot Recognition and Basis Adjustments in Partial Like-Kind Exchanges addresses the partial-recognition issues that often decide the final answer.

How to Use This Chapter

• Read the Section 1031 lesson before the boot lesson because basis adjustments make more sense after the core exchange framework is stable.
• Compare Section 1031 and Section 1033 carefully, since both defer gain but rely on different triggering events and replacement standards.

In this section

• Section 1031 Like-Kind Exchange Timelines, Real Estate Scope, and Intermediaries
  Section 1031 exchange rules covering qualifying real estate, deadlines, and qualified intermediary requirements.
• Section 1033 Involuntary Conversions, Replacement Periods, and Condemnation Awards
  Section 1033 involuntary-conversion rules covering condemnation, disaster events, and replacement-property deadlines.
• Boot Recognition and Basis Adjustments in Partial Like-Kind Exchanges
  Boot recognition and replacement-property basis adjustments in partial like-kind exchanges.