like-kind exchange
- A type of swap where business or investment assets of similar type, class, or character, excluding stocks or bonds, are traded in accordance with section 1031 of the Internal Revenue Code, resulting in the transaction being free from tax liability
- To avoid paying taxes on her real estate profits, she conducted a like-kind exchange with another property investor.
- The company used a like-kind exchange to trade their old equipment for new, thereby deferring the taxes on the transaction.
- Legally, a like-kind exchange can be performed to swap one business asset for another and avoid immediate tax consequences.
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