[Verse 1]
When you trade your rental house for land
Same kind swap, the IRS understands
Ten thirty-one keeps your gains on hold
Real property only since tax reform took hold
Defer the tax, let your wealth compound
Like-kind exchanges, profits postponed
[Chorus]
Four ways to defer what Uncle Sam's due
Ten thirty-one, ten thirty-three too
One twenty-one for your home sweet home
Four fifty-three when payments are slow
Ten forty-one between married folk
Nonrecognition, that's how wealth grows
[Verse 2]
Lightning strikes and burns your store away
Insurance pays more than your basis today
Ten thirty-three says reinvest that gain
In similar property, dodge the tax pain
Involuntary conversion saves the day
When disaster strikes but you're made whole again
[Chorus]
Four ways to defer what Uncle Sam's due
Ten thirty-one, ten thirty-three too
One twenty-one for your home sweet home
Four fifty-three when payments are slow
Ten forty-one between married folk
Nonrecognition, that's how wealth grows
[Bridge]
Two years of five you called it home
Two fifty thousand gain you own
Single filer walks away clean
Five hundred thousand for the married team
Principal residence exemption's bright
Section one twenty-one makes it right
[Verse 3]
Sell your business, payments spread in time
Four fifty-three makes installment sales shine
Recognize the gain as cash comes in
Matching income to the years you're paid within
Divorce decree splits property clean
Ten forty-one makes transfers serene
[Chorus]
Four ways to defer what Uncle Sam's due
Ten thirty-one, ten thirty-three too
One twenty-one for your home sweet home
Four fifty-three when payments are slow
Ten forty-one between married folk
Nonrecognition, that's how wealth grows
[Outro]
Real estate swaps and disaster relief
Home sales and payments bring tax relief
Spousal transfers when love goes wrong
Nonrecognition keeps wealth strong