replacement property

Definition of "replacement property"
  1. A property bought by an investor with the proceeds from the previous property's sale in a 1031 exchange, within specific IRS-regulated timeframes
How to use "replacement property" in a sentence
  1. After the sale of his commercial building, Jim acquired another one as his replacement property to defer taxes.
  2. For the 1031 exchange to be valid, the replacement property must be identified within 45 days.
  3. She closed the sale on the replacement property within the 180 day limit set by the IRS.

Provide Feedback
Browse Our Legal Dictionary
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z