Like Kind Exchange

Generally, if you exchange business or investment property solely for business or investment property of a like kind, no gain or loss is recognized under Internal Revenue Code Section 1031. The rules are complex and the time limitations are strict, but if you plan to sell investment property, the Starker, or like kind, exchange will allow you to minimize any tax consequences. To qualify, property owners must exchange real or personal property relinquished property for other property of a like kind replacement property.