Section 1031 Exchanges: Death of a Related-Party Exchange — Did ‘Butler’ Do It?

Daily Tax Report Journal, Vol. 75, No. 1, 2015

5 Pages Posted: 26 Apr 2015

Date Written: April 20, 2015

Abstract

In N. Cent. Rental & Leasing v. United States, the Eighth Circuit Court of Appeals affirmed a district court in disqualifying from Section 1031 nonrecognition an equipment leasing company that bought its replacement equipment from an affiliated equipment dealer. In so doing, the appeals court failed to acknowledge the possible existence of an exception to Section 1031(f)(4) disallowance for replacement property originally acquired by a related party in anticipation of an exchange. This Article discusses the holding and its broader effects on the law of related-party exchanges.

Keywords: Section 1031 exchange, section 1031(f), related-party exchange, like-kind exchange, equipment exchange, program exchange

Suggested Citation

Borden, Bradley T. and Lederman, Alan S., Section 1031 Exchanges: Death of a Related-Party Exchange — Did ‘Butler’ Do It? (April 20, 2015). Daily Tax Report Journal, Vol. 75, No. 1, 2015, Available at SSRN: https://ssrn.com/abstract=2598774

Bradley T. Borden (Contact Author)

Brooklyn Law School ( email )

250 Joralemon Street
Brooklyn, NY 11201
United States

HOME PAGE: http://www.brooklaw.edu

Alan S. Lederman

Akerman, Senterfitt ( email )

One Southeast Third Avenue
25th Floor
Miami, FL 33131-1714
United States

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