Deconstructing tax-deferred real estate exchanges

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Now that we understand why tax-deferred exchanges are so advantageous and the motivations for using them, let's discuss the simple tax-deferred-exchange concept. An important detail to know is that a tax-deferred exchange is viewed as one continuous real estate investment, rather than a taxable sale followed by a reinvestment. To qualify for a tax-deferred "like kind" exchange of your investment or business real property, you must trade equal or up in both price and equity for another "like kind" property. If you take anything out of the trade, called "boot," it is taxable because it is "unlike kind" personal property, such as cash or net mortgage relief. Purchase Bob Bruss reports online. But there is no limit to the number of investment or business properties you can trade or acquire in a tax-deferred exchange. Also, there is no minimum holding time or frequency rule. Theoretically, you could hold your investment or business property just one day, then trade up, and then trade ag...