Read an interesting blog by San Diego’s Roberta Murphy. She pointed out that the first government-challenged like-for-like property exchange occurred when two farmers agreed to exchange horses. One owned six white horses, the other six black horses.

After the amicable trade the federal government claimed that a taxable event had occurred. Not so, claimed the farmers. They challenged the government and won.

So, in 1921, like-for-like property exchanges emerged as legally recognized income tax shelters. Today’s options for exchanges have expanded greatly since 1921. According to Deloitte Tax LLP, a unit of Deloitte & Touche USA LLP, 1031 exchanges in 2003 totaled $175 billion.

Roberta tells me that Villa Sotheby’s International Realty is working to establish a real estate trading platform, whereby property owners in San Diego and other parts of Southern California will be able to exchange one property for another. Listings will be catalogued by those wishing to “move up” and those seeking to “move down.”

Villa Sotheby’s is predicting a number of successful property exchanges!
Please feel free to call Roberta at 760-402-9101 if you have any questions.

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