What is a Starker Exchange?
A Starker Exchange, also known as a "deferred exchange," is a tax-deferred exchange of like-kind properties that is authorized under Section 1031 of the Internal Revenue Code. This type of exchange allows real estate investors to sell an investment property and then reinvest the proceeds in another property while deferring payment of capital gains taxes on the sale.
In a Starker Exchange, the investor must identify the replacement property within 45 days of the sale of the original property, and the replacement property must be acquired within 180 days. The exchange is considered "like-kind" as long as both the original property and the replacement property are held for investment or used in a trade or business.
At 1031 Exchange Place, we specialize in facilitating Starker Exchanges for our clients. We help investors navigate the complex rules and regulations surrounding these exchanges, and we work closely with qualified intermediaries to ensure that the exchange is completed smoothly and efficiently.
With a Starker Exchange, investors can potentially defer payment of capital gains taxes indefinitely, allowing them to reinvest their money and grow their real estate portfolio. If you're interested in learning more about Starker Exchanges, please don't hesitate to contact us at 1031 Exchange Place. Our team of experts is here to help you make the most of your real estate investments.
We'd love to guide you through the 1031 process, let us know how we can help!