A Delayed (Tax-Free) Exchange refers to a transaction where an investment property is traded for another like-kind property, allowing for the deferment of capital gains taxes as stipulated by IRS guidelines.
Under Section 1031 of the Internal Revenue Code, like-kind property used in a trade or business or held as an investment can be exchanged tax-free.
Assets considered to be of the same nature and character, even if they differ in quality or grade, which can be exchanged under Internal Revenue Code Section 1031 to defer capital gains taxes.
Section 1031 of the Internal Revenue Code allows for tax-deferred exchanges of certain types of property, enabling the deferral of capital gains taxes under specific conditions.
A Starker Transaction, also known as a delayed tax-free exchange, is a method used in real estate to defer the payment of capital gains tax on the sale of an investment property by using the proceeds to purchase a like-kind property.
