Section 1031

Section 1031 means:
the part of the Internal Revenue Code that deals with tax-free exchanges of certain property. The general rules for a tax-free exchange of real estate are that the properties must (1) be exchanged, (2) be like-kind property (real estate for real estate, e.g.), and (3) be held for use in a trade or business or held as an investment. The Tax Reform Act of 1984 allows delayed exchanges within certain limits.

See also other Tax Terms and Definitions in U.S.A.

boot; reverse Starker transaction; tax-free exchange.