Like Kind-Exchange of Business Interests - It's Not Just About Real Estate

Monday May 29, 2017

Like-kind exchange rules that are commonly used to exchange commercial real estate in tax-deferred transactions can also be used to exchange business interests and assets other than real estate. This use of like-kind exchange rules offers an attractive alternative structure to the conventional sale of business interests or assets. Not only is any tax on unrealized gain in the underlying assets deferred, the exchanged assets in some circumstances might result in favorable basis treatment, especially when combined with a IRC Section 338(h)(10) election, which treats a stock deal as an asset deal. This program will provide you with a practical guide to using like-kind exchange rules for business interests and assets other than real estate.
Handout Materials Will be Emailed to You Prior to the Seminar

Starts 12:00 p.m.
1.0 MCLE Credit Hours

• Use of like-Kind exchange/Section 1031 rules to exchange business interests and assets other than real estate
• Types of transactions where like-kind exchanges make more sense than conventional sales
• How to allocate the transaction price to specific type of assets exchanged – intangibles, personal property, real estate, intellectual property, etc.
• Use of “Qualified Intermediaries” and other third parties in these transactions
• Like-kind exchange of business interests and IRC Section 338(h)(10) stock-treated-as asset sale elections
• Counseling clients about the risks involved in these types of transactions


Glenn M. Johnson, Ernst & Young, LLP – Washington, D.C.