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Simultaneous 1031 Tax Exchange
Simultaneous exchanges of qualified properties under Section 1031 of the tax code occur when a property owner locates a second property owner and the two parties agree to exchange properties.
It is rare for such simultaneous exchanges to occur. However, even when two parties can agree to an exchange, the values of the properties being exchanged are not typically equal, so values must be equalized by the payment of cash to one side or the other. This will result in a capital gains tax for at least one party.
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What is the Boot Test?