History of the 1031 Exchange

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Spectrus Real Estate – 1031 Exchange History


  • 1918 - First income tax law
  • 1921 - Section 202 of Internal Revenue Code states that gain or loss not recognized on exchanges of like-kind property
  • 1924 - Non like-kind exchanges excluded from Section 202
  • 1928 - Code section changed to Section 112(b)(1)
  • 1954 - Section 1031 enacted
  • 1975 - Starker exchange; tax court approves delayed exchange
  • 1977 - Tax court reverses prior ruling, invalidating delayed exchanges
  • 1979 - 9th Circuit reverses, reinstating initial ruling and creating delayed exchange
  • 1984 - Congress amends Section 1031; 45-day identification period and 180 day exchange period and partnerships excluded
  • 1991 - Regulations 1.1031 passed
  • 2002 - Revenue Procedure 2002-22 issued by IRS

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