|
|
Article: Creative Like-Kind Exchanges: Those with substantial real estate holdings always used Section 1031 to lock in gain and defer tax. But now business owners and individuals are using it.
- Article from:
- The Practical Accountant
- Article date:
- June 1, 2006
- Author:
CopyrightCOPYRIGHT 2006 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
"Section 1031 exchanges are particularly hot right now," observes Maury Golbert, tax partner with Berdon LLP, in New York City. He attributes it in part to rising real estate prices, which is resulting in owners sitting on substantial gains. The example he gives is someone who purchased a business 20 years ago, and now the building housing the business is the most valuable part of business.
Who's Suggesting and Why
"Like-kind exchanges are most commonly used where the client is holding low-basis real property that if sold would result in significant long-term capital gains. They can be especially beneficial if the owner is an older individual. Section ...