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Can A avoid gain recognition by a like kind exchange of T stock for Y stock...

Can A avoid gain recognition by a like kind exchange of T stock for Y stock under Section 1031?

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Answer #1

Section 1031 of IRC

allows you to postpone paying tax on the gain if you reinvest the proceeds in similar property as part of a qualifying like-kind exchange

LIKE-KIND EXCHANGE properties must be held for use in a trade or business or for investment.   Property used primarily for personal use, like a primary residence or a second home or vacation home, does not qualify for like-kind exchange treatment

however this provision doesnt apply to following

as stock is an exclusion from 1031 for the defferment,A cant avoid recogniition of ths recognition of gain

  • Inventory or stock in trade

  • Stocks, bonds, or notes

  • Other securities or debt

  • Partnership interests

  • Certificates of trust

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