March 27, 2007--San Diego, California--The state of Mississippi's governor today signed HB 1585 into law, which brings the state of Mississippi's income tax laws into conformity with Federal income tax laws under Section 1031 of the Internal Revenue Code.
HB 1585 modifies Mississippi Code Section 27-7-9(f)(1)(A) by adding "... In addition, no gain or loss shall be recognized on any exchange of property if no gain or loss is recognized with regard to such exchange under Section 1031 of the Internal Revenue Code."
Previously Section 27-7-9(f)(1)(A) of the state of Mississippi Code provided tax-deferred exchange treatment when property held for productive use in a trade or business or for investment was exchanged solely for like-kind replacement property held for use in a trade or business or for investment, but Regulation 203 of the state of Mississippi severely limited the application of Section 27-7-9(f)(1)(A) for many investors because it required that the like-kind replacement property be located inside the state of Mississippi.
HB 1585 clarifies that any tax-deferred like-kind exchange transaction, which qualifies for tax-deferred exchange treatment under Section 1031 of the Internal Revenue Code, also qualifies for tax-deferred exchange treatment under state of Mississippi income tax laws.
# # #
Exeter 1031 Exchange Services, LLC is a leading national provider of Qualified Intermediary, Exchange Accommodation Titleholding, and Advisory services for tax-deferred like-kind exchange transactions pursuant to Section 1031 of the Internal Revenue Code. Exeter 1031 Exchange Services, LLC administers all types of tax-deferred like-kind exchange transactions, including forward, reverse and improvement (build-to-suit or construction) 1031 exchange structures, in all 50 states. Exeter 1031 Exchange Services, LLC currently has national office locations in San Diego, Irvine, Ontario, Fresno, and San Francisco, California and Springfield, New Jersey and Winston-Salem, North Carolina.