Using Like-Kind Exchanges to Minimize a Foundation’s Investment Income Tax—Part I
Author: Katherine David, J.D..
Source: Volume 13, Number 04, May/June 2014 , pp.1-4(4)
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Abstract:
Private foundations can minimize their IRC §4940 tax liability by reinvesting proceeds from the sale of exempt-use property into other property that will be held for tax-exempt use. In order to plan for such reinvestment, private foundation managers and advisors should be familiar with the benefits of deferring tax liability using exchanges under IRC §1031. This article, first in a series on the use of IRC §1031, explains the application of IRC §4940 to gains from the sale of real property and describes certain basics in structuring sales to satisfy the requirements IRC §1031.Keywords: “Like-Kind” Requirement; deferred gain
Affiliations:
1: Strasburger & Price, LLP.