Real estate investors trying to defer taxes may want to explore like-kind exchanges.
Provided by Greg Ferguson
What exactly is a 1031 exchange? For some real estate investors, it may be a nice answer to a dilemma involving an income property. A properly executed 1031 exchange lets an investor sell one property and buy a similar one while deferring capital gains taxes. Also called a Starker exchange or a like-kind exchange, this procedure has been used for some time.1