If you have real estate you want to sell, and there’s similar property you’d like to buy, don’t overlook the tax advantages of a “like-kind” 1031 tax-deferred exchange. This kind of “property barter” lets you avoid current capital gains taxes until the eventual date that you cash out.

You don’t necessarily have to obtain the property from someone who obtains yours. In fact, direct property exchange is rare. More typical are three-party deals.

Here’s how it works: You find a buyer for your property, next you get a “qualified intermediary” to hold the sale proceeds in escrow.

Then within 45 days you find another property you want, and notify the intermediary in writing. Finally, you receive the replacement property within 180 days after you transfer your property.

Seek competent counsel for such a transaction, to avoid making amateur mistakes. The National Council of Exchangors holds a National Marketing Conference every year. (There are local chapters of exchangors in many cities across the U.S.)

To contact the National Council of Exchangors you can call 800-324-1031

BarterNews.com has a real estate section you may want to check out…
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Read the weekly Tuesday Barter Report to stay abreast of what’s happening…
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