The Section 1031 exchange – Why it’s such a great estate planning tool

Description

Abstract: A Section 1031 like-kind exchange allows taxpayers to exchange one or more pieces of business or investment real estate for other business or investment real estate without recognizing capital gain. The only limitation is that the value of the new properties should be equal to or greater than the value of the existing properties. This article discusses safe harbors to be aware of and how a Sec. 1031 exchange can harness the power of estate planning through such means as exchanging properties for tenancy-in-common interests.