Understanding all the different qualifications can help you make the right decision for whatever your next venture might be. There are rules that define what can be categorized as a like-kind property and the limitations can sometimes cause a road block.
The IRS defines those qualified for a like-kind exchange as:
“Individuals C corporations S corporations partnerships (general or limited) limited liability companies trusts and any other taxpaying entity may set up an exchange of business or investment properties for business or investment properties under Section 1031.”
Deferring taxes gives you the opportunity to build your investment with tax-deferred growth until your investment has matured. Though research can be done to see if your property qualifies the best way to be certain is to contact one of Lindemeyer CPA’s experienced tax professionals and take a look at the exchange. We can help you navigate your way through the information and answer any questions you have.