Basis for heirs who acquire property by inheritance, which is the fair market value of the property at the time of death. An exchange executed under the provisions of IRS Code Section 1031 which results in the deferral of otherwise recognized gain. One, two, or three replacement properties can be identified by the taxpayer in an exchange, regardless of the fair market value of the relinquished property or of the identified replacement properties. Any number of replacement properties can be identified by the taxpayer in an exchange, provided that their combined fair market value does not exceed 200 percent of the combined fair market value of the relinquished property. It cannot act as the tax or legal adviser for an exchanging taxpayer.
Any person considering a tax-deferred exchange is advised to seek independent tax and legal counsel.