Tax-Free Like Kind Exchanges of Trademarks
"Upon further consideration, the Office of Associate Chief counsel (Income Tax & Accounting) has concluded that the analysis of Newark Morning Ledger Co. applies in determining whether intangibles constitute goodwill or going concern value within the meaning of § 1.1031(a)‑2(c)(2). Accordingly, intangibles such as trademarks, trade names, mastheads, and customer‑based intangibles that can be separately described and valued apart from goodwill qualify as like‑kind property under § 1031. In our opinion, except in rare and unusual situations, intangibles such as trademarks, trade names, mastheads, and customer‑based intangibles can be separately described and valued apart from goodwill. Of course, to qualify as like‑kind property under § 1031, the property must satisfy all other requirements of § 1031 including the nature and character rules of § 1.1031(a)‑2(c)(1). Accordingly, the Service should not follow the position in TAM 200602034 and IRS NSAR 20074401F on this issue. We are available to assist should you have questions on whether intangibles are of like kind under § 1.1031(a)-2(c)(1)."
See www.corpfinblog.com/uploads/file/0911006.pdf
