Section 1031 and Proximate and Midstream Business Transactions

48 Pages Posted: 30 Aug 2006 Last revised: 13 Oct 2007


Section 1031 exchanges frequently occur in proximity to business transactions (i.e., entity formations, mergers, divisions, and dissolutions). Although section 1031 exchanges and many business transactions can be tax free, the proximity of such transactions often presents challenging legal and theoretical questions. In fact, depending on the order of the transactions, taxpayers may lose the tax-free treatment of the exchange or of the proximate business transaction. This Article examines the tax consequences and theoretical aspects of section 1031 exchanges and proximate business transactions.

Keywords: section 1031, like-kind exchanges, partnerships, corporations, mergers, divisions

Suggested Citation

Borden, Bradley T., Section 1031 and Proximate and Midstream Business Transactions. Available at SSRN:

Bradley T. Borden (Contact Author)

Brooklyn Law School ( email )

250 Joralemon Street
Brooklyn, NY 11201
United States


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