26 U.S.C. § 1024 — Untitled legal text

Page 2270 TITLE 26—INTERNAL REVENUE CODE [§ 1024 EFFECTIVE DATE OF 1976 AMENDMENT Amendment by section 1901(a)(127) of Pub. L. 94–455 applicable with respect to taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94–455, set out as a note under section 2 of this title. REPEALS Pub. L. 94–455, § 1901(a)(127), cited as a credit to this section, which renumbered this section as section 1024 of this title, was repealed by Pub. L. 96–223, title IV, § 401(a), Apr. 2, 1980, 94 Stat. 299, resulting in the redes- ignation of this section as section 1023 of this title. See Effective Date of 1980 Amendments and Revival of Prior Law note set out above. [§ 1024. Renumbered § 1023] PART III—COMMON NONTAXABLE EXCHANGES Sec. 1031. Exchange of real property held for productive use or investment. 1032. Exchange of stock for property. 1033. Involuntary conversions. [1034. Repealed.] 1035. Certain exchanges of insurance policies. 1036. Stock for stock of same corporation. 1037. Certain exchanges of United States obliga- tions. 1038. Certain reacquisitions of real property. [1039. Repealed.] 1040. Transfer of certain farm, etc., real property. 1041. Transfers of property between spouses or inci- dent to divorce. 1042. Sales of stock to employee stock ownership plans or certain cooperatives. 1043. Sale of property to comply with conflict-of- interest requirements. [1044. Repealed.] 1045. Rollover of gain from qualified small business stock to another qualified small business stock. Editorial Notes AMENDMENTS 2017—Pub. L. 115–97, title I, §§ 13303(b)(6), 13313(a), Dec. 22, 2017, 131 Stat. 2124, 2133, substituted ‘‘Exchange of real property held for productive use or investment’’ for ‘‘Exchange of property held for productive use or in- vestment’’ in item 1031 and struck out item 1044 ‘‘Roll- over of publicly traded securities gain into specialized small business investment companies’’. 2010—Pub. L. 111–312, title III, § 301(a), Dec. 17, 2010, 124 Stat. 3300, amended analysis to read as if amend- ment by Pub. L. 107–16, § 542(d)(2), had never been en- acted. See 2001 Amendment note below. 2001—Pub. L. 107–16, title V, § 542(d)(2), June 7, 2001, 115 Stat. 84, substituted ‘‘Use of appreciated carryover basis property to satisfy pecuniary bequest’’ for ‘‘Transfer of certain farm, etc., real property’’ in item 1040. 1997—Pub. L. 105–34, title III, §§ 312(d)(15), 313(b)(3), Aug. 5, 1997, 111 Stat. 841, 842, struck out item 1034 ‘‘Rollover of gain on sale of principal residence’’ and added item 1045. 1993—Pub. L. 103–66, title XIII, § 13114(c), Aug. 10, 1993, 107 Stat. 431, added item 1044. 1990—Pub. L. 101–508, title XI, § 11801(b)(8), Nov. 5, 1990, 104 Stat. 1388–522, struck out item 1039 ‘‘Certain sales of low-income housing projects’’. 1989—Pub. L. 101–194, title V, § 502(b)(3), Nov. 30, 1989, 103 Stat. 1755, added item 1043. 1986—Pub. L. 99–514, title XVIII, § 1854(a)(12), Oct. 22, 1986, 100 Stat. 2878, substituted ‘‘employee stock owner- ship plans or certain cooperatives’’ for ‘‘employees’’ in item 1042. 1984—Pub. L. 98–369, div. A, title IV, § 421(c), title V, § 541(b)(3), July 18, 1984, 98 Stat. 794, 890, added items 1041 and 1042. 1981—Pub. L. 97–34, title IV, § 421(j)(2)(C), Aug. 13, 1981, 95 Stat. 312, substituted ‘‘Transfer of certain farm, etc., real property’’ for ‘‘Use of farm, etc., real property to satisfy pecuniary bequest’’ in item 1040. 1980—Pub. L. 96–223, title IV, § 401(a), (c)(2)(B), Apr. 2, 1980, 94 Stat. 299, 300, amended item 1040 generally and repealed Pub. L. 94–455, § 2005(e)(1), and the amendment made thereby. See 1976 Amendment note below. 1978—Pub. L. 95–600, title IV, § 405(c)(2), Nov. 6, 1978, 92 Stat. 2871, substituted ‘‘Rollover of gain on sale of prin- cipal residence’’ for ‘‘Sale or exchange of residence’’ in item 1034. 1976—Pub. L. 94–455, title XX, § 2005(e)(2), Oct. 4, 1976, 90 Stat. 1878, which added item 1040, was repealed by Pub. L. 96–223, § 401(a). See section 401(b), (e) of Pub. L. 96–223, set out as an Effective Date of 1980 Amendments and Revival of Prior Law note under section 1023 of this title. 1969—Pub. L. 91–172, title IX, § 910(c), Dec. 30, 1969, 83 Stat. 722, added item 1039. 1964—Pub. L. 88–570, § 2(b), Sept. 2, 1964, 78 Stat. 856, added item 1038. 1959—Pub. L. 86–346, title II, § 201(b), Sept. 22, 1959, 73 Stat. 623, added item 1037. § 1031. Exchange of real property held for pro- ductive use or investment (a) Nonrecognition of gain or loss from ex- changes solely in kind (1) In general No gain or loss shall be recognized on the ex- change of real property held for productive use in a trade or business or for investment if such real property is exchanged solely for real prop- erty of like kind which is to be held either for productive use in a trade or business or for in- vestment. (2) Exception for real property held for sale This subsection shall not apply to any ex- change of real property held primarily for sale. (3) Requirement that property be identified and that exchange be completed not more than 180 days after transfer of exchanged property For purposes of this subsection, any prop- erty received by the taxpayer shall be treated as property which is not like-kind property if— (A) such property is not identified as prop- erty to be received in the exchange on or be- fore the day which is 45 days after the date on which the taxpayer transfers the property relinquished in the exchange, or (B) such property is received after the ear- lier of— (i) the day which is 180 days after the date on which the taxpayer transfers the property relinquished in the exchange, or (ii) the due date (determined with regard to extension) for the transferor’s return of the tax imposed by this chapter for the taxable year in which the transfer of the relinquished property occurs. (b) Gain from exchanges not solely in kind If an exchange would be within the provisions of subsection (a), of section 1035(a), of section 1036(a), or of section 1037(a), if it were not for the fact that the property received in exchange con- sists not only of property permitted by such pro- visions to be received without the recognition of