Like Kind Exchanges
The like-kind exchange provisions are one of the few exceptions where gain on a transaction can go unrecognized and not be taxed. Tax savings of 20-25% are normal. In a like-kind exchange, property held for business or investment purposes is exchanged for "like-kind" property. For example: If you plan to sell a piece a real property and then buy another, consider a like-kind exchange. Like-kind exchanges are complex and have specific requirements to accomplish the tax deferral. Please feel free to contact us if you would like additional information.