Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

like-kind property

Read a random definition: Rule 116 amendment

A quick definition of like-kind property:

Like-kind property refers to a type of property that can be used in a 1031 exchange to delay paying taxes on capital gains. Normally, when you sell an investment property, you have to pay taxes on any profit you made. But with a 1031 exchange, you can use the money from selling your property to buy a new property that is similar in type and value, and you won't have to pay taxes on the profit until you sell the new property. The new property has to be chosen within 45 days and purchased within 135 days, and it has to cost the same amount or more than the original property. Only real estate can be used in a 1031 exchange, and personal residences don't qualify.

A more thorough explanation:

Definition: Like-kind property refers to property that meets the requirements of a 1031 exchange, which allows investors to defer capital gains taxes by reinvesting the proceeds from the sale of an investment property into a new, similar investment property.

For example, let's say an investor sells a rental property for $500,000 and has a capital gain of $100,000. Normally, they would owe taxes on that gain. However, if they use the proceeds to purchase another rental property within a certain timeframe, they can defer paying those taxes.

The new property must be considered "like-kind," which means it must be similar in nature and use to the original property. This can include any type of real estate used for investment purposes, such as rental properties, commercial buildings, or undeveloped land.

It's important to note that the new property must be identified within 45 days of the sale of the original property, and the purchase must be completed within 135 days. Additionally, the new property must be of equal or greater value than the original property.

Overall, like-kind property is a valuable tool for investors looking to defer capital gains taxes and reinvest in similar properties.

LIFO accounting | likelihood of confusion

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
THATS SO FUNNY
i cant i would go crazy
JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
20:50
omg im on a plane weeeee
the devil
youre on a plane??? LSD made the mile high club??
20:50
yo splitterus are you in school already
20:50
it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
roger dat. see u in heck
im back, r u applying this cycle too
JumpySubsequentDolphin
21:32
this child fell asleep on me
JumpySubsequentDolphin
21:32
im so uncomfortable
just push him off the entire seat
JumpySubsequentDolphin
21:34
LMAOOOO
JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
LSD+ is ad-free, with DMs, discounts, case briefs & more.