The Sec. 1031 exchange – A powerful estate planning tool

Description

Abstract: Now that the combined gift and estate tax exemption amount has topped $5 million, many people planning their estates have turned their attention to income taxes. For those who own highly appreciated business or investment real estate, one of the most effective tax strategies is the Section 1031 “like-kind” exchange. This article explains how a Sec. 1031 exchange can defer capital gains taxes on appreciated property. A sidebar answers the question, “Can personal property be used with a Sec. 1031 exchange?”