Like-Kind Exchanges: Like-Kind Exchanges (Sec 1031)
Like-Kind Exchanges: Like-Kind Exchanges (Sec 1031) is a critical concept in EA Exam Part 2, Property Transactions. This topic covers essential tax principles that frequently appear on the exam. Understanding like-kind exchanges (sec 1031) is crucial for passing Part 2.
Quick answer
Like-kind exchange questions under Section 1031 test deferral of gain on exchanges of real property held for business or investment. After 2017, §1031 applies only to real property.
Like-Kind Exchanges (Sec 1031) is tested on EA Exam Part 2 (Property Transactions). Primary IRS reference: IRC §1031.
About this EA exam topic
Like-kind exchange questions under Section 1031 test deferral of gain on exchanges of real property held for business or investment. After 2017, §1031 applies only to real property.
The EA exam tests the treatment of boot, the basis of the replacement property, and the strict identification and exchange-period timelines.
What you'll be tested on
- Section 1031 eligibility (real property only)
- Recognized gain when boot is received
- Basis of replacement property
- The 45-day identification and 180-day exchange periods
How to prepare
- Remember §1031 is now real property only.
- Gain is recognized to the extent of boot received.
- Memorize the 45- and 180-day deadlines.
Practice questions for Like-Kind Exchanges (Sec 1031)
What this topic covers
Like-Kind Exchanges (Sec 1031) appears in Part 2: Business Taxation within the Property Transactions domain. VantageEA practice questions focus on how like-kind exchanges rules are applied in realistic EA exam fact patterns.
What candidates practice
Candidates practice identifying tested facts, choosing the best multiple-choice answer, and reviewing explanations tied to IRC §1031, IRS Publication 544. This topic supports timed 100-question PSI-style mock tests and shorter topic review sessions.
Related practice-question themes include like-kind, 1031-exchange, boot, deferred-exchange.
Topic overview
Official IRS sources
Related keywords
Frequently asked questions
What qualifies for a like-kind exchange now?
Only real property held for business or investment; personal property no longer qualifies.
Which part?
Part 2 (Businesses).
Reference?
IRS Publication 544 and Form 8824 instructions.
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