Guidance on Like-Kind Exchanges Added to Checkpoint Catalyst

Thomson Reuters has added new content to Checkpoint Catalyst that includes content covering IRC § 1031 to assist tax practitioners in implementing like-kind exchanges to secure tax deferral benefits for their clients.

The new material found in Checkpoint Catalyst Topic 505 Like-Kind Exchanges, provides thorough guidance on how to defer taxable gain by exchanging property held for productive use in a trade or business or for investment, for like-kind property.

“IRC § 1031 contains intricate rules, and practitioners need a clear understanding of how they work, as each taxpayer’s situation and goals vary,” said Lesli S. Laffie, J.D., LL.M., a Thomson Reuters Checkpoint Catalyst Senior Editor. “While traditionally, these deals have involved real estate, the new trend is like-kind exchanges of artwork.”

Checkpoint Catalyst now provides detailed information on when a Section 1031 exchange can be used, meeting the complex rules, samples of drafting language, illustrations to guide practitioners through different scenarios, required attachments to returns, and more.

“IRC § 1031 contains strict requirements that have to be fulfilled to qualify for tax deferral,” Laffie said. “For that reason, we have structured this content not only to address these requirements, but also to highlight potential pitfalls.”

Checkpoint Catalyst, which is built on the award-winning Checkpoint platform, is a new generation of tax research that provides multi-jurisdictional analysis of specific tax issues and business transactions from a practical, workflow perspective. Topics recently added to the Checkpoint Catalyst library include:

Financially Troubled Businesses (Checkpoint Catalyst Topic 137).
Sales and Exchanges: Basic Principles (Checkpoint Catalyst Topic 501).
Sales & Use Tax: Utilities Services (Checkpoint Catalyst Topic 1057).
Sales & Use Tax: E-Commerce (Checkpoint Catalyst Topic 1051).