like-kind exchange

Normally, when companies sell properties, they must pay taxes on any gain they receive. Like-kind exchanges, transactions in which companies trade properties, may be carried out without any immediate tax consequences. They must satisfy IRS rules, however, which include: The properties must have the same “nature or character,” as set forth in IRS guidance. The exchanges can be business or investment properties put to a productive use. The exchanges can’t involve inventory, most securities and some other assets. Taxes must be paid on any cash or non-similar property that is part of the deal. Keep in mind that like-kind exchanges [...]