1031 Tax-Free Exchange

Business, Legal & Accounting Glossary

Definition: 1031 Tax-Free Exchange


1031 Tax-Free Exchange


Full Definition of 1031 Tax-Free Exchange


A type of tax credit which allows owners of business or investment-related properties to exchange the property with a different property and not have to pay capital gain taxes. Essentially, the owner of the property exchanges it for another piece of property that is of equal or lesser value and does not have to pay taxes on the transaction, hence the tax-free exchange portion of the name. There are strict requirements that the owner must meet when selecting a replacement property for the transaction. also called like-kind exchange.


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Modern Language Association (MLA):
1031 Tax-Free Exchange. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
December 02, 2021 https://payrollheaven.com/define/1031-tax-free-exchange/.
Chicago Manual of Style (CMS):
1031 Tax-Free Exchange. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/1031-tax-free-exchange/ (accessed: December 02, 2021).
American Psychological Association (APA):
1031 Tax-Free Exchange. PayrollHeaven.com. Retrieved December 02, 2021
, from PayrollHeaven.com website: https://payrollheaven.com/define/1031-tax-free-exchange/

Definition Sources


Definitions for 1031 Tax-Free Exchange are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 21st November, 2021 | 0 Views.