1031 Like-Kind Exchanges

Joseph B. Darby III Partner (617) 338-2985 vCard
Brian E. Hammell Associate (617) 338-2462 vCard
David J. McLaughlin Counsel (617) 338-2833 vCard
David J. Nagle Partner (617) 338-2873 vCard
Ameek Ashok Ponda Partner (617) 338-2443 vCard

Sullivan & Worcester LLP is one of the leading law firms in the country at planning, structuring and implementing like-kind exchange transactions under Code Section 1031. 

Each year, we help clients structure tax-free exchanges of business and investment property worth literally billions of dollars, for clients ranging from individuals to Fortune 500 companies, and involving categories of property ranging from real estate to airplanes to intangible assets and even to pieces of classical and contemporary art.     

Among other noteworthy clients, we represent one of the largest qualified intermediaries in the United States, and annually participate in like-kind exchange programs that involve the disposition and acquisition of tens of billions of dollars of vehicles, real estate and other business and investment property. 

The like-kind exchange provisions contained in Code Section 1031 allow businesses and individual investors to defer gain recognition on the disposition of eligible property so long as the transactions are properly structured under the detailed and technically complex guidance provided by the IRS through regulations and other formal and informal authority. 

Under 1031, property used in a trade or business or held for investment can generally be exchanged tax-free for property of "like kind" that will also be used in the trade or business or held for investment. The concept is deceptively simple, but the successful implementation of these transactions requires high levels of experience, knowledge and technical tax skills.

S&W is fortunate to have a deep and experienced team of attorneys with decades of experience in structuring like-kind exchanges. We have helped structure like-kind exchange transactions that range from the tried-and-true to the cutting edge, including such technically complex arrangements as deferred forward exchanges, deferred "reverse exchanges," exchange transactions involving multiple properties and complex reconfigurations of partnerships and partnership interests, and exchanges involving physical construction of the replacement property (a so-called "build to suit") by an exchange accommodation titleholder as part of the exchange. 

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