G(6) Limitation

Section 1.1031(k)-1(g)(6) provides that an agreement with an escrow holder, trustee or qualified intermediary must expressly limit the taxpayer's rights to receive, pledge, borrow, or otherwise obtain the benefits of money or other property held in the qualified escrow or trust or by the qualified intermediary.

General Asset Classes

When making a determination of like-kind in connection with depreciable tangible personal property, if a particular relinquished asset sold is replaced with a replacement asset acquired and both fall within one of the thirteen General Asset Classes, then the properties are deemed to be like-kind.  For example, office furniture sold that was replaced with office equipment purchased would be like-kind due to the first General Asset Class which provides “ (I) Office furniture, fixtures, and equipment (asset class 00.11)”  are all in the same class.

Ground Lease

A ground lease differs from other types of leases.  Generally speaking, one may use a ground lease as a tenant to occupy a piece of land and make improvements to it. For example, one person may own the land and another, under a long-term lease of the land, may build a building on the land and own those improvements, Sometimes it may be the only way to gain access to extremely valuable real estate in an excellent location. The owner may be unwilling to sell, or the owner may have received the property by gift or deed (such as a church or university) and be prohibited from selling for some period of time. At the end of the lease term, the improvements become the property of the landowner.