What is a like-kind exchange? (1031 Exchange)

admin  /   January 25, 2019

Put simply, it is a technique for deferring gain on the sale of property by re-investing proceeds of sale in “like-kind” property.  The theory is that if one does not cash out of an investment (having rolled over proceeds into new like-kind property), the economic gain has not been realized in a way that produces the cash to pay the tax, and so no tax should accrue.

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