Andersen Global
12 July 2023
To Defer or Not to Defer: That Is the Like-Kind Exchange Question
On any sale of real estate, a like-kind exchange (LKE) should be considered as a way to eliminate immediate tax being imposed. An LKE is an exchange of rental real estate or real estate held for business or investment use (the relinquished property) for one or more real estate properties held for rental or for business or investment use (the replacement properties). A one-paragraph clause inserted in any sale agreement can reserve your right to do an LKE.