What Is A Like-Kind Exchange In SFR Investing?
A like-kind exchange defers capital gains and depreciation recapture taxes when exchanging investment properties under IRC Section 1031.
A like-kind exchange involves selling a relinquished property and acquiring replacement property under Section 1031 of the Internal Revenue Code. This structure defers federal and most state capital gains and depreciation recapture taxes, allowing investors to reinvest proceeds without immediate tax liability.
The information in this article is for educational purposes only and does not constitute tax, legal, financial, or investment advice. Consult a qualified professional before making investment decisions.