§ 1031 Exchanges

Calculate the amount of the recognized capital gain / loss, deferred capital gain / loss, and basis in replacement property amounts in a given § 1031 exchange scenario.

Blue J determines the above-noted amounts using the following information from the user:

• the sales price and adjusted basis of the Relinquished Property;

• the purchase price of the Replacement Property;

• the amount of cash transferred or received by the taxpayer in the exchange; and

• the amount of non-cash consideration transferred or received by the taxpayer in the exchange.

This guided analysis determines if a property transaction meets the requirements for tax-deferred treatment pursuant to § 1031.

The module examines:

• the characteristics of the properties sought to be exchanged;

• the taxpayer who owns the property to be relinquished and their relationship to the other parties in the transaction;

• the structure of the transaction and the timing of steps taken to give it effect; and

• any consideration received for the relinquished property besides the replacement property. 

Blue J’s database allows you to surface and read 1031 exchange cases, revenue rulings and other relevant materials by searching on key factors and the merits of the case. For example, search by characteristics of the properties sought to be exchanged or by characterization, structure, and timing of transaction.