Video: Easements for Renewable Energy as Relinquished Property in a 1031 Exchange

The sale of easements, such as those for renewable energy generation, may qualify as the sale of a real property interest under IRC Section 1031. In this video, Max Hansen, Managing Director at Accruit, discusses how Exchangers can leverage proceeds from these sales as Relinquished Property to complete a Internal Revenue Code Section 1031 states that "no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held for productive use in a trade or business or for investment." 1031 Exchange , reinvesting in other real estate for investment purposes or productive use in a trade or business.

We also touch on the ability for (“Exchangor” or “Taxpayer”) Person intending to conduct a 1031 tax deferred exchange, who transfers a relinquished property and thereafter receives a replacement property. Exchanger s to use the proceeds to acquire nearly any type of investment or business use real estate based on the broad definition of like-kind, such as single/multi-family rentals, self-storage facilities, commercial buildings, and more.