Section 1031

Section 1031 definition - business

Section 1031

A part of the IRS Code that permits owners of investment property to defer the capital gains tax on the exchange of property of a like kind. The deferral of capital gains applies to a like-kind exchange of rental real estate, but not to like-kind exchanges of stocks, bonds, and partnership interests. See also like-kind exchange.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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