Sale of a residence and like-kind exchanges: this two-part article examines how recent developments in the principal residence exclusion and like-kind exchanges affect mixed personal- and business-use property. Part II examines how Rev. Proc. 2005-14 applies secs. 121 and 1031 to sales and like-kind exchanges of such property.(part 2)

From: The Tax Adviser | Date: December 1, 2005| Author: Dilley, Steve; Orbach, Kenneth N. | Copyright information

EXECUTIVE SUMMARY

* Rev. Proc. 2005-14 provides five basic principles for applying the Sec. 121 residence exclusion and Sec. 1031 like-kind exchange rules to mixed-use property.

* The tax consequences of a sale and exchange of mixed-use property vary according to the facts.

* Tax advisers should warn clients that the Sec. 121 exclusion is not available for five years after replacement property is received in a like-kind exchange.

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