Selling Investment Property and Vacation Homes

Like-Kind Exchange

If you want to remain in the rental real estate business, but want to unload your property for a different one of similar characteristics, a like-kind exchange may be a possible solution. To keep it simple, a like-kind exchange allows you to swap your property for one that is similar, while deferring taxes on any gain. A real estate broker that specializes in these types of exchanges may be able to help you find a property that meets your objectives.

IMPORTANT NOTE: Before going through with the swap, consult a tax professional and a real estate attorney experienced in this area to ensure that the exchange meets the complicated IRS rules governing the transaction.

SUGGESTION: Like-kind exchanges are reported on IRS Form 8824: Like-Kind Exchanges.

Share Article:
Add to GooglePlus

NOTICE

First United offices will be closed, Saturday, August 20; to celebrate our employees with a company-wide event.

You may still access First United through our ATM Network, or using Online or Mobile banking.

×