Deferred LKEs.

• Author: Laffie, Lesli S.
• Position: From the IRS

Rev. Rul. 2002-83 provides that a like-kind exchange (LKE), preceded by a transfer of property to a qualified intermediary (QI), is not tax-free when a related party disposes of like-kind property for cash in the transaction.

The transaction is disqualified for tax-free treatment under Sec. 1031(f)(1) and (4), which prevent related taxpayers from exchanging...