A new Internal Revenue Service (IRS) Private Letter Ruling says that transferable development rights (TDRs) are of “like kind” with tangible real property and eligible for 1031 tax deferred treatment, even though these rights are intangible rights related to real property. The IRS issued Private Letter Ruling 202335002 (the PLR) regarding whether TDRs are of “like kind” within the meaning of Section 1031 of the Internal Revenue Code.

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