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Tired of paying taxes on a gain in your business or investment property, please say YES. The 1031 exception which you probably have heard about allows you to postpone paying this tax if you reinvest the proceeds in similar property as part of a qualifying like-kind exchange. Gain deferred is tax deferred, not tax-free.
This exchange includes (a) like-kind property exclusively, or (b) like-kind property along with cash, liabilities and property that are not like-kind.  If you receive cash, relief from debt, or property not like-kind, you may trigger some taxable gain in the year of the exchange. Thus, there can be deferred & recognized gain in the same transaction-when you exchange for like-kind property of lesser value.

WHO QUALIFIES? Owners of investment and/or business property whether as an individual, C corporation, S corporation, general or limited partnerships, LLC's, trusts and any other taxpaying entity under Section 1031.
(see PART 2:February 4th) Richard Wayne Abatelli is the owner of Abatelli Real Estate Appraisals and is a Associate Broker with Douglas Elliman, Cutchogue, N.Y