A like-kind exchange under §1031 of the Internal Revenue Code is one or more transactions that allows for the disposal of an asset and the acquisition of another replacement asset without generating a current tax liability from the sale of the first asset. In the context of a building or other appreciated property, a like-kind exchange can defer income tax liability.
1031 Like-Kind Exchanges
Defer the gain on business and investment real estate, then make the most of the replacement property.