Friday, June 18, 2010 at 07:23PM | Staff Emissions Credits Are Like-Kind For 1031 Tax Deferred Exchange Treatment
Are Emissions Credits Like Kind Property?
Would the sale of Nitrogen Oxide Emissions (NOx) Emissions Credits and the subsequent purchase of Volatile Organic Compounds (VOC) Emissions Credits (or vice versa) as part of a 1031 Tax Deferred Exchange be considered like kind property for tax-deferred exchange treatment under Section 1031 of the Internal Revenue Code.
IRS Issues PLR 201024036
The Internal Revenue Service issued Private Letter Ruling (PLR) 201024036 today, which concludes that the underlying nature and character of the rights conferred by emissions credits for nitrogen oxide emissions (NOx) are like-kind to the rights conferred by emissions credits for volatile organic compounds (VOC). The Internal Revenue Service concluded that the underlying nature and character of the emission credits were of like-kind property to each other and therefore qualified for tax-deferred exchange treatment under Section 1031 of the Internal Revenue Code.
