Like-kind exchange

A like-kind exchange under United States tax law, also known as a 1031 exchange, is a transaction or series of transactions that allows for the disposal of an asset and the acquisition of another replacement asset without generating a current tax liability from the sale of the first asset. In current law (post-2017), section 1031 applies only to exchanges of real property held for productive use in a trade or business or for investment. Like-kind exchanges have been characterized as tax breaks or "tax loopholes".

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