GlobeSt.com SPECIAL: Property Exchanges Fueling Slow Market

ORLANDO-Although Section 1031 of the Internal Revenue Code has been on the books since 1921, the conventional exchange of like-kind assets and the reverse Starker exchanges only now are showing up as one of the real estate industry’s most favorite deal-making vehicles, buyers, sellers and brokers tell GlobeSt.com.

For example, whenever possible, George D. Livingston, founder/chairman, Realvest Partners Inc., Maitland, FL and a property owner himself, advises seller clients to use 1031 exchanges to defer taxes.

“The property will be given a new basis (cost figure) in the estate when the owner dies and capital gains are forgiven,” Livingston tells GlobeSt.com. Estate taxes, however, may still be due on the property.