Like-kind Exchange

Like-kind Exchange is widely known as a “1031 Exchange”. 1031 is the code of the Internal Revenue Section which regulates tax treatment of gains or losses resulting from an exchange of a business or investment asset.
STE Corp. will explain and guide you through the requirements which need to be met in order to treat a transaction as qualified for a “1031 Exchange”. In general, this rule allows deferring tax obligations. You may not have to pay taxes on gains from the “sale” of the business asset because of the acquisition of a new business asset which is within the same “kind”.
We will help you determine:

• what type of asset qualify for a “1031 Exchange”,
• what other rules need to be fulfilled,
• what would the tax exposure be due to a regular gain on sale,
• what is the amount of tax saving while using a “1031 Exchange”.