A like-kind exchange, also known as a tax-free exchange, is a transaction or series of transactions that allow for the deferral of capital gains tax if certain conditions are met.
A nonrecognition transaction refers to any disposition of property in which the gain or loss is not recognized in whole or part under tax laws, like a like-kind exchange.
Qualified Replacement Property refers to property acquired in a like-kind exchange or due to an involuntary conversion, provided that the new property has the same qualified use as the property it replaces.
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