Like Kind Exchange

Description and Definition of Like Kind Exchange

The tax deferred exchange of property used in a business or held for investment – not including securities and indebtedness or interests such as stocks and bonds – that is similar to another for which it has been exchanged. The definitions of like kind properties can be found in the Internal Revenue Code at section 1031. The items must be the same type but they do not need to be of the same grade or quality.

Resources

See Also

Further Reading

• Like Kind Exchange in the West's Tax Law Dictionary
• Like Kind Exchange in “A Dictionary of Taxation”