• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Basis adjustments after like-kind exchange

by on
in Small Business Tax,Small Business Tax Deduction Strategies

Q. You say that you must adjust basis for a new business car on a trade-in. Is that also true for real estate exchanges? A.G.

A. Yes, the basic rules are the same for like-kind exchanges of real estate under Section 1031. Thus, the basis of the real estate property you acquire is equal to the basis of the old property, adjusted in value for any other “boot” given or received in the exchange. For instance, boot might include forgiveness of a mortgage or cash proceeds used to “even out the deal.”


Like what you've read? ...Republish it and share great business tips!

Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...

We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.

The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.

" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/36952/basis-adjustments-after-like-kind-exchange "

Leave a Comment