Recent Trends in Like-Kind Exchanges

13 Pages Posted: 11 Oct 2017

See all articles by Gerald Auten

Gerald Auten

U.S. Department of the Treasury, Office of Tax Analysis (OTA)

David Joulfaian

U.S. Department of the Treasury, Office of Tax Analysis (OTA); Georgetown University - Department of Economics

Romen Mookerjee

Dartmouth College

Date Written: August 1, 2017

Abstract

Like-kind exchanges enable taxpayers to defer capital gains taxes when certain types of property are exchanged rather than sold. The deferred gains from such exchanges have grown over the years, peaking at over $100 billion before the onset of the Great Recession. Equally noteworthy, the share of corporations of these exchanges has increased in recent years, with much of the corporate deferred gain concentrated in certain sectors and accounted for by a relatively small number of firms. Contrary to the conventional wisdom, exchanges are not typically dominated by real estate transactions and, in recent years, corporations have accounted for over half of deferred gains.

Keywords: Capital Gains Tax, Deferral, Like-Kind Exchanges

JEL Classification: D1, D2, H2, H3

Suggested Citation

Auten, Gerald and Joulfaian, David and Mookerjee, Romen, Recent Trends in Like-Kind Exchanges (August 1, 2017). Available at SSRN: https://ssrn.com/abstract=3049029 or http://dx.doi.org/10.2139/ssrn.3049029

Gerald Auten

U.S. Department of the Treasury, Office of Tax Analysis (OTA) ( email )

1500 Pennsylvania Ave., N.W.
Washington, DC 22203
United States

David Joulfaian (Contact Author)

U.S. Department of the Treasury, Office of Tax Analysis (OTA) ( email )

1500 Pennsylvania Ave. NW
Washington, DC 20220
United States

Georgetown University - Department of Economics ( email )

37th St NW & O St NW
Washington, DC 20007
United States

Romen Mookerjee

Dartmouth College ( email )

Department of Sociology
Hanover, NH 03755
United States

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