If an investor sells appreciated property they pay tax. However, property that qualifies for preferential tax treatment under Internal Revenue Code Section 1031 (IRC 1031) is treated quite differently.

IRC 1031 states:

" No gain or loss shall be recognized if property held for productive use in a trade or business or for investment is exchanged solely for property of like-kind."

Therefore, an investor using IRC Section 1031 can exchange raw land for a rental home, an apartment complex for a shopping center or rental houses for an office building. The use of the property is a key factor in determining the tax treatment.

Please go to: www.Starker.com for additional information, questions or to speak to a qualified representative.