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March 30, 2021

Commercial Real Estate Direct

In its top stories for March 30, Commercial Real Estate Direct featured a discussion of like-kind exchanges, their benefits and the concern voiced by many industry professionals about their possible elimination under the Biden administration.

The like-kind exchange provision of the IRS Code permits investors to defer—not eliminate—capital gains taxes from the sale of an investment property if proceeds are reinvested in the purchase of other property or properties. Investors regularly use like-kind exchanges to shelter gains from property sales, utilizing the funds to improve those properties or invest in others. With an estimated 10-20 percent of all commercial property sales done as tax-deferred exchanges each year, Stroock partner André Nance noted that changing the rule will be very difficult and a lot of people will be dislocated by it.

Read the article in Commercial Real Estate Direct (subscription required). 

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