Thursday, March 18, 2010 at 11:32AM | Staff What's the Difference Between a 1031 Property Exchange vs. a 1031 Exchange?
This was a question that was recently posted on our 1031 Exchange Forum.
What's In A Name?
I can certainly understand the confusion regarding 1031 Exchange transactions. There have been so many names and nick names used over the years to refer to and describe 1031 Exchange transactions and/or the role of the Qualified Intermediary.
The names and terms for 1031 Exchanges have slowly developed and evolved over the years, but you can and will still hear many different variations even in today's real estate market.
1031 Property Exchange vs. 1031 Exchange
First, it's important to understand where all of this comes from. The tax-deferred exchange of real property or personal property is outlined in Section 1031 of the Internal Revenue Code and further explained within Section 1.1031 of the Treasury Regulations.
Hense, the most common name of 1031 Exchange. However, the following names have been used to describe 1031 Exchanges over the years, including 1031 Property Exchanges:
- 1031 Exchange
- 1031 Property Exchange
- 1031 Tax Deferred Exchange
- Tax Deferred Exchange
- Like Kind Exchange
- Delayed Exchange
- Starker Exchange
- Deferred Exchange
- Section 1031 Exchange
- IRC Section 1031 Exchange
There are certainly others that I have probably forgotten to mention, but you get the idea. They generally all refer to the same thing - a tax-deferred exchange transaction structured pursuant to Section 1031 of the Internal Revenue Code. There are various differences in structure and procedure, but they all fall under the same code.
