Sec. 1031(a) of the Internal Revenue Code provides that no gain or loss is recognized when property held for productive use in a trade or business or for investment is exchanged for like-kind property to be held either for productive use in a trade or business or for investment. The purpose of section 1031 is to defer the recognition of gain or loss on transactions in which, although in theory the taxpayer may have realized a gain or loss, his economic situation is in substance the same after the transaction as it was before the transaction. H. Rept. No. 704, 73d Cong., 2d Sess. (1934); Jordan Marsh Co. v. Commissioner, 269 F.2d 453, 455-456 (2d Cir. 1959).
Robert S. Horwitz is a Principal at Hochman Salkin Toscher Perez P.C., former Chair of the Taxation Section, California Lawyers’ Association, a Fellow of the American College of Tax Counsel, a former Assistant United States Attorney and a former Trial Attorney, United States Department of Justice Tax Division. He represents clients throughout the United States and elsewhere involving federal and state administrative civil tax disputes and tax litigation as well as defending clients in criminal tax investigations and prosecutions. In 2022 the Tax Section of the California Lawyers Association awarded him the Joanne M. Garvey Award for lifetime achievement in and contributions to the field of tax law. Additional information is available at http://www.taxlitigator.com
For more information, please contact Robert S. Horwitz at horwitz@taxlitigator.com
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