What Requirements Must Be Satisfied for a Delayed Swap to Qualify

question 168

Essay

What requirements must be satisfied for a delayed swap to qualify for § 1031 like-kind exchange treatment?

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Definitions:

Patent

An exclusive right to sell or produce one’s discovery or invention. A patent is good for 20 years.

Copyright

The exclusive right that is granted by the federal government to sell and reproduce literary, musical, or artistic works for a period of time.

Plant Asset

Long-term tangible assets that are used in the operations of a business and are not intended for sale, such as machinery, buildings, and equipment.

Machine Account

An account used in bookkeeping to track the costs and depreciation of a company's machinery.