The Internal Revenue Code has long allowed taxpayers to use like-kind exchanges to defer taxable gains. That doesn’t necessarily mean a like-kind exchange will go unchallenged by the IRS, though. This article summarizes a recent case in which the agency — and two federal courts — found the company’s property transactions more akin to loans than like-kind exchanges. A short sidebar demonstrates why appraisers must be allowed to reach their conclusions independently.
Exelon Corp. v. Comm’r, No. 17-2964, -2965, Oct. 3, 2018, 7th Cir.