Question
Why does a §1031 exchange defer gain instead of eliminating it?
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Answer
The old basis carries into the replacement property as substituted basis.
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Question
When does §1031 apply after the TCJA?
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Answer
Only to real property held for business or investment.
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Question
How is installment-sale gain measured on each principal payment?
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Answer
Multiply principal collected by the gross profit percentage.
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Question
How is recognized gain determined in a §1031 exchange?
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Answer
It is the lesser of realized gain or boot received.
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