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Using Like-Kind Exchanges to Minimize a Foundation’s Investment Income Tax—Part I  


Author:  Katherine E. David.


Source: Volume 32, Number 01, Fall 2014 , pp.51-58(8)




Journal of Taxation of Investments

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Abstract: 

Private foundations can minimize their Section 4940 tax liability by reinvesting proceeds from the sale of exempt-use property into other property that will be held for tax-exempt use. This article, first in a two-part series on the potential benefits to foundations of using Section 1031 like-kind exchanges, explains the application of Section 4940 to gains from the sale of property and describes how to structure sales to satisfy the requirements under Section 1031.

Keywords: sale of property; IRC Sec. 1031; IRC Sec. 4940; private foundations; exempt-use property

Affiliations:  1: Strasburger & Price, LLP.

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