When you exchange real property used for business or held as an investment solely for other business or investment property that is the same type or “like-kind”, it is known as a like-kind exchange under United States tax law. It is also known as a 1031 exchange. The swap transactions, when structured properly, allows for the disposal of the asset(s) and the acquisition of the replacement asset without generating a current tax liability.

We recently had Marland Hayes, a Tuscaloosa attorney, who focuses on commercial financing, bond finance, acquisitions, commercial real estate, industrial incentives, environmental and corporate issues, and represents multifamily-housing and mixed-use developers in acquisitions, financings and operations.  He has done a lot of 1031 exchanges and provides great insight on this week’s JMF Advisors Show.