Fixed-Price Put Options Undermine Section 1031 Treatment of Tenant-in-Common Interests

175 Tax Notes Federal 1989 June 27, 2022

Brooklyn Law School, Legal Studies Paper No. 716

17 Pages Posted: 25 Aug 2022

Date Written: August 22, 2022

Abstract

This article provides a detailed analysis of tenancy-in-common arrangements and shows how fixed-price put options to sell such interests undermine the classification of such arrangements as tenancies-in-common for federal income tax purposes. The article is reminder that there are limits to the types of terms that co-owners can adopt when they structure tenancies-in-common.

Keywords: section 1031, tenancy-in-common, drop-and-swap, put options, fixed-price put options

Suggested Citation

Borden, Bradley T., Fixed-Price Put Options Undermine Section 1031 Treatment of Tenant-in-Common Interests (August 22, 2022). 175 Tax Notes Federal 1989 June 27, 2022, Brooklyn Law School, Legal Studies Paper No. 716, Available at SSRN: https://ssrn.com/abstract=4197283

Bradley T. Borden (Contact Author)

Brooklyn Law School ( email )

250 Joralemon Street
Brooklyn, NY 11201
United States

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

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