Waterford 1031 Exchange Services LLC: A National Qualified Intermediary for Tax Deferred Exchanges

SECTION 1.1031(d)-1T.

COORDINATION OF SECTION 1060 WITH SECTION 1031 (temporary).

If the properties exchanged under section 1031 are part of a group of assets which constitute a trade or business under section 1060, the like-kind property and other property or money which are treated as transferred in exchange for the like-kind property shall be excluded from the allocation rules of section 1060. However, section 1060 shall apply to property which is not like-kind property or other property or money which is treated as transferred in exchange for the like-kind property. For application of the section 1060 allocation rules to property which is not part of the like-kind exchange, see Section 1.1060-1T (b), (d), and (g) EXAMPLE 3. [T.D. 8215, 53 FR 27044, July 18, 1988]