Tuesday, August 2, 2011
Brant J. Hellwig
(South Carolina) has published The Holding Intent Requirement for Property Transferred in a Section 1031 Exchange
, 45 Real Prop. Tr. & Est. L.J. 635 (2011). Here is the abstract:
As a condition for nonrecognition treatment, § 1031 requires property relinquished in an exchange to have been held by the taxpayer for productive use in a trade or business or for investment. This Article addresses whether a taxpayer who acquires property for the purpose of subsequently transferring it in an intended § 1031 exchange can satisfy the “holding intent” condition. The Article examines conflicting judicial decisions and administrative guidance on this issue and then turns to the congressional justifications supporting § 1031 nonrecognition treatment to conclude that the “holding intent” requirement can be satisfied this instance.