Like Kind Exchange Explained


Like Kind Exchange Explained

A tax-deferred exchange is a method by which a real estate investor trades one or more relinquished income real estate for one or more replacement income real estate of like-kind, while deferring the payment of federal income taxes and some state taxes on the transaction. In turn, internal revenue code provides that no gain or loss shall be recognized on the exchange of income real estate held for productive use in a trade or business. Like Kind Exchanges structured as tenant in common provide real estate investors a range of opportunities to meet personal investment objectives. This includes income real estate type and geographic diversification, and, most importantly, the elimination of day-to-day income real estate management obligations.

Contact us today if you are interested in rolling over an income real estate investment through a like kind exchange. We can match you with a licensed broker who can manage your exchange.

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