Here's A Brief Information Related To Like-Kind Exchange

Full Service 103121 Mar, 2023Finance

Real estate investors may be required to pay capital gain taxes when a property is sold. Under current federal tax law, an IRC ?1031 tax-deferred exchange permits the investor to defer the capital gain tax by investing in a ?like?kind? exchange, which is the disposal of an asset and the acquisition of another similar asset without rendering a capital gains tax liability from the sale of the first asset. Any real estate, except an individual's residence, is deemed like-kind to any other real estate.