TAX-FREE EXCHANGE

By SovConn | May 18, 2015

tax-free exchange.A transfer of property for which the tax law specifically defers (or possibly exempts) income-tax consequences. • For example, a transfer of property to a controlled corporation under IRC (26 USCA) § 351(a) and a like-kind exchange under IRC (26 USCA) § 1031(a). [Cases: Internal Revenue 3184; Taxation 996. C.J.S. Internal Revenue §§ 120–121, 124; Taxation §§ 1732–1733.]
[Blacks Law 8th]

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