Dear wardzone-ga;
Thank you for allowing me to answer your interesting question. Section
1031 became part of the Internal Revenue Code in 1921 and has since
evolved from the original, simple but restrictive two-party swap to
today?s highly strategic and sophisticated exchanges.
The 1031 Exchange concept dates back to 1921, only 3 years after the
first income tax laws were enacted. ?When income taxes were first
imposed in 1918, gain or loss recognition was required on all
disposition of property. Tax Deferred Exchanges were first introduced
in 1921 allowing owners of investment property to defer the payment of
capital gains that is normally due upon the sale of investment
properties. Since inception, there has been five major amendments
made to the Tax Deferred Exchange as we know it today.?
HISTORY OF THE 1031 EXCHANGE
http://www.arrow1031.com/history.htm
Starker v. United States (1979), the Tax Reform Act of 1984 and the
Tax Reform Act of 1986 were primarily responsible for Section 1031
becoming the issue of interest that it is today.
HISTORY OF THE 1031 EXCHANGE PROGRAM
http://www.landoffice.com/31dpland.htm
TAX-FREE EXCHANGES UNDER IRC SEC. 103(A)(3) AFTER STARKER
http://www.taxprophet.com/pubs/stark_ar.html
DIVERSIFIED EXCHANGE CORPORATION
http://www.diversifiedexchange.com/articles_sections_1031_121.asp
?Tenants in common? is a form of asset ownership in which two or more
persons have an undivided interest in the asset, where the ownership
shares are not required to be equal, and where ownership interests can
be inherited. In other words, they are co-owners, each owning separate
and distinct shares which may differ in size. All tenants in common
share equal property rights except that, upon the death of a tenant in
common, that share does not go to the surviving tenants but is
transferred to the estate of the deceased tenant. This type of
ownership (relative to Section 1031) was introduced at the same time
as Section 1031.
As you surmised, the word "tenant" originated under the feudal system
in old English law, referring to land "owners" who held their land on
tenure granted by a lord. The ancient feudal system was a social
structure that existed throughout much of Europe between 800 and 1400
and that revolved around a multi-level hierarchy between lords (who
held land granted under tenure from the king), and their tenants (also
called "vassals"). Tenants would lease land from the lord in exchange
for loyalty and goods or services, such as military assistance or
money. In exchange, the tenant would be protected from attack. The
phrase ?tenants-in-common? eventually became a common legal phrase and
was even recognized by the English Monarchy as evidenced by this, the
earliest reference I could find to the concept being mentioned in
early America, in a letter to King George III, dated 1765:
?Thirdly, That the pretence of your parliament of Great-Britain to tax
your American subjects, is an absolute insult upon your Majesty's
understanding, and a robbery of your sole right to govern them, in as
much as if this vile institution be left to take place, your majesty
and your parliament will be tenants in common.?
A LETTER TO HIS MOST EXCELLENT MAJESTY, 1765
http://memory.loc.gov/learn/features/timeline/amrev/britref/majesty.html
I hope you find that my research exceeds your expectations. If you
have any questions about my research please post a clarification
request prior to rating the answer. Otherwise I welcome your rating
and your final comments and I look forward to working with you again
in the near future. Thank you for bringing your question to us.
Best regards;
Tutuzdad-ga ? Google Answers Researcher
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