VOICES FROM THE INDUSTRY: Why like-kind exchanges don’t make sense for everyone

Section 1031 of the Internal Revenue Code allows you to defer federal taxes by swapping real property for like-kind property. For years, tax advisors have been recommending a 1031 strategy whenever real estate developers and owners are ready to harvest their gains. Today, with real estate valuations at record highs and capital gains tax rates at record lows, there is a good chance a 1031 exchange strategy could defer taxes but lose profits. You may be better off to recognize…

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