1031 Exchange Services

Internal Revenue Code, Treasury Regulations, and other Tax Resources

Treasury Inspector General For Tax Administration

The Inspector General for Tax Administration of the Department of the Treasury issued a report on 1031 Exchanges entitled "Like-Kind Exchanges Require Oversight to Ensure Taxpayer Compliance" on September 17, 2007.

IRS Issues Fact Sheet on Like Kind Exchanges Under Section 1031 of the IRC

The IRS issued Fact Sheet FS-2008-18 on March 5, 2008 addressing Like Kind Exchanges under IRC Code Section 1031.   (PDF version)

Income Tax Acts

The Housing and Economic Recovery Act of 2008 was signed into law on Wednesday, July 30, 2008 by President George W. Bush. The Act affects tax-free exclusions on the sale of primary residences under Section 121 of the Internal Revenue Code. 

Congress enacted the American Jobs Creation Act of 2004 amending the IRC of 1986, which among other numerous changes, enacted a five (5) year holding requirement for property being sold pursuant to a Section 121 exclusion when it was previously acquired as part of a 1031 exchange.

Congress enacted the Gulf Opportunity Zone Act of 2005, which amends the IRC of 1986 to provide tax benefits for the Gulf Opportunity Zone (GO Zone Act) and certain areas affected by Hurricanes Rita and Wilma.

Internal Revenue Code ("IRC" or "IRS Tax Code")

Concise Overview of Sections 1031, 1033, 1034, 721 and 121 of the IRC

Brief History of Section 1031 of the Internal Revenue Code

Section 1031 of the Internal Revenue Code (1031 Exchange — Investment Property)

Section 1032 of the Internal Revenue Code (1032 Exchange — Corporation Stock for Property)

Section 1033 of the Internal Revenue Code (1033 Exchange — Involuntary Conversion)

Section 1034 of the Internal Revenue Code (1034 Exchange — Repealed)

Section 1035 of the Internal Revenue Code (1035 Exchange — Insurance Policies)

Section 1245 of the Internal Revenue Code (1245 Property)

Section 1250 of the Internal Revenue Code (1250 Property — Depreciable Real Property)

Section   721 of the Internal Revenue Code (upREIT or Section 1031/721 exchange)

Section   707 of the Internal Revenue Code (Partnership and Determination of Tax Liability)

Section   453 of the Internal Revenue Code (Installment Sale Treatment)

Section   267 of the Internal Revenue Code (Related party transactions)

Section   121 of the Internal Revenue Code (121 Exclusions, including H.R. 4520) 

Department of the Treasury Regulations (IRS Regulations)

Section 1.1031 of the Department of the Treasury Regulations (Exchange of Investment Property)

Section 1.1032 of the Department of the Treasury Regulations

Section 1.1033 of the Department of the Treasury Regulations (Involuntary Conversion)

Section 1.1034 of the Department of the Treasury Regulations (Repealed)

Section 1.1035 of the Department of the Treasury Regulations (Exchange of Annuity Contracts)

Section   1.935 of the Department of the Treasury Regulations (Exchange into Guam Property)

Section   1.721 of the Department of the Treasury Regulations (Exchange into an upREIT)

Section   1.707 of the Department of the Treasury Regulations (Partnership Taxation)

Section   1.453 of the Department of the Treasury Regulations (Installment Sale Regulations)

Section   1.301 of the Department of the Treasury Regulations (Business/Disregarded Entities)

Section   1.267 of the Department of the Treasury Regulations (coming soon)

Section   1.121 of the Department of the Treasury Regulations (Exclusion on Primary Residence)

IRS Revenue Rulings (Rev. Rul.)

Revenue Ruling   2004-86 (Classification of Delaware Statutory Trusts (DSTs) for 1031 exchanges)

Revenue Ruling   2004-77 (Disregarded entities)

Revenue Ruling   2003-76 (1035 exchange of annuity contracts)

Revenue Ruling   2003-56 (1031 exchange with partnership straddling two income tax years)

Revenue Ruling   2003-56 (1031 exchange with partnership straddling two income tax years PDF)

Revenue Ruling   2002-83 (Related party 1031 exchanges)

Revenue Ruling   2002-83 (Related party 1031 exchanges PDF)

Revenue Ruling   2002-75 (1035 exchange of annuity contracts)

Revenue Ruling     2002-7 (coming soon)

Revenue Ruling     1999-6 (Continuation of Partnership if 100% of Partnership Interests Acquired)

Revenue Ruling     92-105 (Interest in Illinois Land Trusts constitutes interest in real property)

Revenue Ruling       90-34 (Direct deeding)

Revenue Ruling       90-34 (Direct deeding PDF)

Revenue Ruling     89-121 (Multi-asset 1031 tax deferred exchanges)

Revenue Ruling     85-135 (Exchange of two TV stations for assets in another TV station)

Revenue Ruling     84-121 (Two Party Swap; option payment made with real estate)

Revenue Ruling       83-70 (1033 exchange from leasehold improvements to interest in real estate)

Revenue Ruling       83-50 (Section 121 Exclusions; individuals attain age 55)

Revenue Ruling       83-49 (1033 exchange of condemnation award for not similar use property)

Revenue Ruling     82-166 (Exchange of gold bullion for silver bullion not like kind under 1031)

Revenue Ruling       82-96 (Like Kind Exchange of Gold Bullion for Gold Coins)

Revenue Ruling     80-244 (Exchange of stock stock qualifies for nonrecognition under Section 1036)

Revenue Ruling     79-402 (Involuntary conversion; replacement property; land and building; basis)

Revenue Ruling     79-235 (Property received takes completion date of property constructed/sold)

Revenue Ruling     79-143 (1031 exchange of numismatic coins for bullion-type coins not like kind)

Revenue Ruling       79-44 (Exchange of jointly owned farm properties; one subject to mortgage) 

Revenue Ruling     78-163 (1031 exchange/bargain sale to a state qualifies for non-recognition)

Revenue Ruling     78-135 (1031 exchange of partnership interests is not tax-deferred)

Revenue Ruling       78-72 (coming soon)

Revenue Ruling         78-4 (Like kind exchange of remainder interests in farm land)

Revenue Ruling     77-337 (coming soon)

Revenue Ruling     77-297 (coming soon)

Revenue Ruling     72-117 (Oil and gas interest is like kind property in 1033 exchange)

Revenue Ruling     72-456 (1031 exchange closing costs; brokerage commissions)

Revenue Ruling     67-234 (Section 121 Exclusions; individuals attain age 65)

Revenue Ruling     67-235 (Section 121 exclusions; clarified; brother and sister each qualify)

Revenue Ruling     59-229 (Exchange of unencumbered farm lands, buildings, and unharvested crops)

Revenue Ruling     57-365 (Exchange of assets of one business for assets of another business)

Revenue Ruling     55-170 (Taxpayer permitted to retain cash in 1033 exchange)

IRS Revenue Procedures (Rev. Proc.)

Revenue Procedure 2010-14 (Safe harbor treatment for failed 1031 Exchanges when Qualified

Revenue Procedure 2008-16 (Safe harbor for 1031 Exchange of vacation property or second home)

Revenue Procedure 2007-56 (1031 exchange deadlines postponed due to natural disasters)

Rev. Proc. 2007-56, 2007-34 I.R.B. 388 (1031 exchange deadlines postponed due to disasters)

Revenue Procedure 2007-12 (Sections 121 and 1031 reporting requirements modification)

Revenue Procedure 2005-14 (Sections 1031 and 121 Combined)

Revenue Procedure 2004-51 (Property previously owned by taxpayer before QEAA parking)

Revenue Procedure 2004-13 (Postponement by reason of a presidentially declared disaster)

Revenue Procedure 2003-39 (LKE Program 1031 tax-deferred exchanges)

Revenue Procedure 2003-39 (LKE Program 1031 tax-deferred exchanges PDF)

Revenue Procedure 2002-71 (Postponement by reason of a presidentially declared disaster)

Revenue Procedure 2002-69 (H&W; community property; disregarded entities)

Revenue Procedure 2002-22 (Tenant-in-common or fractional ownership interests)

Revenue Procedure 2002-22 (Tenant-in-common or fractional ownership interests PDF)

Revenue Procedure 2002-3   (coming soon)

Revenue Procedure 2000-46 (Treasury declines to issue ruling on partnership interests/TICs)

Revenue Procedure 2000-37 (Reverse 1031 exchanges structured with parking arrangements)

Revenue Procedure 2000-37 (Reverse 1031 Exchanges; Parking Arrangements PDF)

Revenue Procedure 1992-91 (1031 Exchange of emission allowances for like-kind property)

Revenue Procedure 1991-61 (Amends Revenue Procedure 90-3) 

IRS Private Letter Rulings (IRS PLRs)

Private Letter Ruling 201408019 (Constructing Improvements on Property Already Owned)

Private Letter Ruling 201302009 (Property relinquished or transferred through a Deed-In-Lieu of

  Foreclosure qualifies for 1031 Exchange treatment)

Private Letter Ruling 201030020 (Addresses Bank merger with Qualified Intermediary)

Private Letter Ruling 200921009 (Partnership division during a 1033 exchange transaction)

Private Letter Ruling 200920032 (Related party issues between taxpayer and trust)

Private Letter Ruling 200919027 (Trust for deceased sibling’s family not related party for 1031)

Private Letter Ruling 200912004 (1031 exchange of cars and light duty trucks are like-kind)

Private Letter Ruling 200909008 (50% partnership interest qualifies as replacement property when

   taxpayer already owns other 50% partnership interest)

Private Letter Ruling 200908005 (Acquisition and change in tax status of Qualified Intermediary does

   not result in new or disqualified Qualified Intermediary)

Private Letter Ruling 200901020 (1031 exchange of residential density development rights)

Private Letter Ruling 200901004 (Non-safe harbor reverse construction exchange on property

   already owned taxpayer)

Private Letter Ruling 200842019 (1031 exchange of leaseholds and personal property approved)

Private Letter Ruling 200812012 (Replacement property contributed to new partnership after

   termination of testamentary trust still qualifies as 1031 exchange)

Private Letter Ruling 200810016 (Acquisition of like-kind replacement property from related party OK)

Private Letter Ruling 200807005 (Single partner limited partnership is a disregarded entity for 1031)

Private Letter Ruling 200805012 (1031 exchange of development rights as interest in real estate)

Private Letter Ruling 200734003 (Contribution of trust assets to partnership not taxable under 721)

Private Letter Ruling 200732012 (Acquisition of replacement property by a disregarded entity treated

   as an acquisition by taxpayer)

Private Letter Ruling 200730002 (1031 exchange of partial interests between related parties)

Private Letter Ruling 200728008 (Transfers of property in multi-party exchanges with related party)

Private Letter Ruling 200725018 (Home used less than 2 years qualifies for reduced 121 exclusion)

Private Letter Ruling 200724007 (QI owned by disqualified party is not a disqualified party)

Private Letter Ruling 200718028 (Relinquished property delivered to the QI in a reverse 1031

   exchange during the 45 calendar day identification period qualifies as identified)

Private Letter Ruling 200712013 (1031 exchange of relinquished property with related party)

Private Letter Ruling 200709036 (Taxpayer's sale to related party followed by sale by related party)

Private Letter Ruling 200708054 (1031 exchange doesn't subject trust to the GST tax)

Private Letter Ruling 200706001 (Related party 1031 exchange qualifies; no basis shifting occurred)

Private Letter Ruling 200702032 (Settlement proceeds qualify for 121 exclusion)

Private Letter Ruling 200701008 (Exchange of upREIT property is not prohibited transaction)

Private Letter Ruling 200652041 (Sale of residence due to pregnancy is unforeseen circumstance)

Private Letter Ruling 200651030 (1031 exchange allowed for LLC set-up by Testamentary Trust)

Private Letter Ruling 200651025 (1031 exchange of easement for land use credits to fee interest)

Private Letter Ruling 200651018 (1031 exchange of easement for land use credits to fee interest)

Private Letter Ruling 200649028 (Exchange of rural land stewardship credits for real property)

Private Letter Ruling 200648012 (Revoking installment sale treatment under Section 453)

Private Letter Ruling 200645001 (121 tax-free exclusion applies to corporate cooperatives)

Private Letter Ruling 200644019 (Property exchange mandated by FCC qualifies for Section 1033)

Private Letter Ruling 200631012 (Interests in NY Cooperative are Like Kind Property)

Private Letter Ruling 200625010 (Fractional interest in property not an interest in a business)

Private Letter Ruling 200625009 (Fractional interest in property not an interest in a business)

Private Letter Ruling 200616005 (Related Party 1031 exchange)

Private Letter Ruling 200550005 (SUVs like-kind to passenger automobiles)

Private Letter Ruling 200532008 (FCC radio spectrum frequency like kind)

Private Letter Ruling 200521002 (Like-kind property received, then testamentary trust terminated)

Private Letter Ruling 200440002 (Related entity/party 1031 exchange)

Private Letter Ruling 200428020 (LKE Program 1031 Exchange with Master Exchange Agreement)

Private Letter Ruling 200404044 (Water rights are like-kind to fee interest in farm land)

Private Letter Ruling 200338001 (Qualified Intermediary not disqualified party)

Private Letter Ruling 200329021 (Building on Property Already Owned by the Taxpayer)

Private Letter Ruling 200327039 (LKE 1031 Exchange Program with Master Exchange Agreement)

Private Letter Ruling 200251008 (Building on Property Already Owned by the Taxpayer)

Private Letter Ruling 200242009 (Tax-deferred exchange of leased vehicles)

Private Letter Ruling 200241013 (Like-kind exchange of vehicles by lessor)

Private Letter Ruling 200241016 (1031 exchange of like-kind leased equipment)

Private Letter Ruling 200240049 (Tax-deferred exchanges of automobiles, trucks, SUVs)

Private Letter Ruling 200236026 (Like-kind exchange LKE program equipment exchanges)

Private Letter Ruling 200211016 (180 day exchange period can not be extended due to receivership)

Private Letter Ruling 200209010 (Transfer of plants and associated nuclear decommissioning funds)

Private Letter Ruling 200208004 (Transfer of plants and associated nuclear decommissioning funds)

Private Letter Ruling 200203042 (Exchange of Perpetual Conservation Easement for fee interest)

Private Letter Ruling 200203033 (Exchange of Perpetual Conservation Easement for fee interest)

Private Letter Ruling 200148042 (Agency language eliminates duplicate documentary transfer tax)

Private Letter Ruling 200137032 (Shares in NY Cooperative are Like Kind Property)

Private Letter Ruling 200118023 (Interest in single member entity qualifies for 1031 exchange)

Private Letter Ruling 200111025 (Non safe harbor reverse 1031 exchange)

Private Letter Ruling 200027028 (Premature disbursement by qualified intermediary not allowed)

Private Letter Ruling 200019019 (Partnerships exchange into TIC interests like kind property)

Private Letter Ruling 200019018 (Partnerships exchange into TIC interests like kind property)

Private Letter Ruling 200019017 (Partnerships exchange into TIC interests like kind property)

Private Letter Ruling 200019016 (Partnerships exchange into TIC interests like kind property)

Private Letter Ruling     9627014 (coming soon)

Private Letter Ruling     9309023 (Combined 121 exclusion and 1034 exchange)

Private Letter Ruling     8942008 (121 exclusion granted to H&W and Mother for 2 on 1 Property)

Private Letter Ruling     8810034 (1031 exchange of co-operative interests for fee simple interest)

Private Letter Ruling     8445010 (Like kind exchange of tenant-stockholder int for condominium int)

Private Letter Ruling     8103117 (1031 exchange of vacation property held for investment)

Technical Advice Memorandums (TAM)

Technical Advice Memorandum 200602034 (Exchange of Intangible Property patents, trademarks)

Technical Advice Memorandum 200424001 (Assembled railroad track like-kind to non assembled)

Technical Advice Memorandum 200346007 (Sale/Leaseback doesn't qualify for 1031 exchange)

Technical Advice Memorandum 200224004 (1031 exchange of television broadcast station licenses)

Technical Advice Memorandum 200130001 (Series of transactions not 1031 exchange)

Technical Advice Memorandum 200126007 (Series of exchanges structured to avoid income taxes)

Technical Advice Memorandum 200039005 (Failed Reverse 1031 Exchange)

Technical Advice Memorandum 200035005 (Exchange of Radio and TV licenses) 

Technical Advice Memorandum 199748006 (Like Kind Exchange involving Related Parties)

Tax Court Memorandums (TC Memo)

Tax Court Memorandum 2010-00064 (Replacement property didn't qualify when taxpayers moved in)

Tax Court Memorandum 2008-00269 (Capital gain is tax deferred using Private Annuity Trust or PAT)

Tax Court Memorandum 2007-00134 (Exchange of vacation homes fails to qualify as 1031 exchange)

Tax Court Memorandum 1994-00027 (Refinancing property immediately after 1031 exchange)

Tax Court Memorandum 1983-00411 (Fair market rent charged can be reduced 20% to related party)

IRS Field Service Advisory Memorandum (FSA)

Field Service Advisory 20021315648 (Exchange of franchise agreement under Georgia law)

Field Service Advisory 200244010 (Aircraft exchange; step transaction; substance over form)

Field Service Advisory 200205023 (Lease-In/Lease-Out structure fails like-kind exchange treatment)

Field Service Advisory 200137003 (Related party 1031 Exchanges permitted with 2 year holding)

Field Service Advisory 200048021 (Failed exchange; constructive receipt; non-qualified intermediary)

Non-Docket Service Advice Review (NSAR)

Non-Docketed Service Advice Review 20050203F (Taxpayer Beneficial Owner Prior to Exchange)

Non-Docketed Service Advice Review 20044101F (Crude Oil Gathering System Like Kind)

Non-Docketed Service Advice Review 20010384   (Allocating Cash Receipts in 1031 Exchange)

Non-Docketed Service Advice Review 200010365 (Relinquished property acquired thru foreclosure)

Non-Docketed Service Advice Review 19935222   (

General Counsel Memorandums

General Counsel Memorandum 39606 (Sale or exchange of airplane takeoff and landing rights)

General Counsel Memorandum 39572 (Acquisition of mineral leases and oil & gas interests like-kind)

General Counsel Memorandum 39536 (1031 exchange of land for stock in mutual interest company)

General Counsel Memorandum 39182 (1033 exchange of railroad track for involuntary improvements)

General Counsel Memorandum 38975 (coming soon)

General Counsel Memorandum 38968 (coming soon)

General Counsel Memorandum 38899 (coming soon)

General Counsel Memorandum 38188 (Section 121; One-time exclusion of gain from sale of principal residence by individual taxpayer who has attained age 55)

General Counsel Memorandum 35266 (Insurance proceeds income; not return of capital in 1033)

Chief Counsel Advisory

Chief Counsel Advice ILM 201025049 (Rental equipment doesn't qualify for 1031 Exchange treatment)

Chief Counsel Advice ILM 201013038 (Heavy equipment dealers; like kind exchange programs)

Chief Counsel Advice ILM 200911006 (Trademark and/or tradenames may be like-kind)

Chief Counsel Advcie ILM 200836024 (Combination of a forward and reverse 1031 exchange)

Chief Counsel Advice ILM 2008-0021 (Taxation of failed 1031 exchange due to failed

   Qualified Intermediary or failed QI)

Chief Counsel Advice ILM 200734021 (T/P residence qualifies for 121 exclusion after natural disaster)

Chief Counsel Advice ILM 200650014 (Partnership distribution in redemption of Taxpayer's interest)

United States Tax Reporter

United States Tax Reporter (Depreciation of MACRS property acquired or relinquished in a like-kind exchange or involuntary conversion)

IRS News Releases, Notices, Treasury Decisions

IRS Notice 2008-25 (GO Zone Bonus Depreciation Recapture Issues)

IRS Notice 2006-34 (Taxation of Cross Licensing Agreements)

IRS Information Letter 2007-0009 (Reverse 1031 exchange does not qualify for postponement)

IRS Information Letter 2004-0230 (Qualification to serve as Qualified Intermediary)

IRS Information Letter 2002-0292 (Hotel industry's need for tax relief after September 11, 2001)

IRS News Release IR-2006-161 (Proposed Regulations Significantly Restrict Private Annuity Trusts)

TD 8535 (1031 Like Kind Exchanges of Real Property—Coordination with Section 453)

Internal Revenue Service Links

This Internal Revenue Service web site link provides IRS news for specific states, primarily regarding disaster relief and/or tax provisions that affect certain states.

U.S. Government Accountability Office (GAO)

GAO Reports on Self-Directed IRAs (SDIRAs)

GAO 19-495 Formalizing DOL's and IRS's Collaborative Efforts Regarding Prohibited Transactions

State Specific Code, Regulations and Rulings

State of California Senate Bill SB 1007 Enacted

Governor Arnold Schwarzenegger signed State of California Senate Bill SB 1007 into law on October 2, 2008.  This new California law requires 1031 exchange Qualified Intermediaries to meet certain minimum standards set by the California legislature.


State of California Franchise Tax Board 

Section 17000 - 17005 (Foreign LLC Filing Requirements)

State of California FTB Notices

CA FTB Notice 2019-05 Installment sale "arrangements" such as Private Annuity Trusts ("PATs"), Deferred Sales Trusts ("DSTs), Monetized Installment Sales and Self-Directed Installment Notes) that are designed to defer taxes when a 1031 Exchange fails will not defer taxes. 

State of New Hampshire

New Hampshire Declaratory Ruling No. 7707 6-2002

Comments regarding New Hampshire Declaratory Ruling No. 7707 6-2002

State of Oregon

TC-MD 080525B (Bulk sale of land, originally acquired for investment, then subdivided into lots, partially improved and sold to a builder was held as an investment and qualified for 1031 exchange)

State of Pennsylvania Department of Revenue

Pennsylvania Personal Income Tax (PIT) Explanation (PDF effective 11/1/2006)

PA PIT Bulletin 2006-07; RTT Bulletin 2006-01; SUT Bulletin 2006-01

Daily Report to Executives dated November 13, 2006: Revenue Department Advises on Treatment

   of Section 1031 Tax-Deferred Exchanges

State of South Dakota

Section coming soon.

State of Wyoming

Section coming soon.

 

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