People pay Federal and state taxes when they have gain on the sale of investment property. However, in an even trade, or if the investor trades up in value, there is no income with which to pay taxes. This logic is the basis for Code Section 1031. The IRS restricts the forms of trading to “like-kind” property and further defines the conditions under which a tax-deferred exchange occurs.
May 31, 2022
April 13, 2022