Article Title
Like-kind exchanges of real property: the element of intent
Abstract
The courts have often had to determine whether the real property involved in a like-kind exchange is held for productive business or investment use by a taxpayer. They have established that the specific intent of the taxpayer at the time of exchange is the controlling factor. However, since objective intent on the part of the taxpayer is often difficult to establish, taxpayer actions both before and after the exchange are considered relevant. Issues that the courts have examined in determining intent include the impact of previous sales agreements, the existence and effect of prearranged plans, whether the property was primarily held for sale and whether the taxpayer himself has used both the property given up and that received in his individual capacity as an investor or businessman.