Using Intermediary Does Not Avoid Rules for Like-Kind Exchanges

March 9, 2010Articles The Legal Intelligencer

Mark Silow discusses the Supreme Court’s decision to decline the examination of the 9th U.S. Circuit Court of Appeals in Teruya Brothers Ltd. & Subsidiaries. It states that a taxpayer is denied the right to employ a qualified intermediary to avoid the like-kind-exchange related-party rules contained in Section 1031(f) of the Internal Revenue Code. He also claims that the 9th Circuit's decision affirmed a Tax Court ruling and is consistent with the position of the IRS.