Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2017
Sales and Use Tax Annotations
140.0000 BARTER, EXCHANGE, "TRADE-INS"—Regulation 1654
140.0007 Exchange Value. Internal Revenue Code section 1031 provides that no gain or loss shall be recognized on the exchange of property held for productive use in trade or business or for investment if such property is exchanged solely for property of like kind which is to be held for productive use in a trade or business or for investment. An exchange of property transferred pursuant to Internal Revenue Code section 1031 is a sale pursuant to Sales and Use Tax Law section 6006(a), and the measure of tax is the realistic exchange value as negotiated by the parties in an arms length transaction. 12/16/91.