Dictionary of Accounting Terms: tax-free exchange
tax-free exchange
transfers of assets or property from one taxpayer to another that are specifically exempted from federal income tax consequences. Examples are exchanges of property or assets to certain corporate entities in which ownership of transferred assets are still maintained; a controlled corporation (Section 351) or like-kind exchanges under Section 1031. In the year of exchange, there is no recognized gain or loss. However, there is an adjustment to basis of the assets received in the transfer, in effect deferring the gain upon future disposition.
Dictionary of Business Terms: tax-free exchange
tax-free exchange
exchange of one piece of property for another, often both real estate, under Section 1031 of the internal revenue code.
Dictionary of Real Estate Terms: tax-free exchange
tax-free exchange
same as tax-deferred exchange.
