The AAHOA Broadcast

Section 1031 Like-Kind Exchanges: Sustaining American Businesses During Economic Uncertainty

| Jun 22, 2022
Like-Kind Exchanges Stimulate Business Growth Of All Sizes

Section 1031 like-kind exchanges are important to the efficient operation and ongoing vitality of thousands of American businesses in a wide range of industries, business structures, and sizes. Small and mid-size business owners and middle-class taxpayers, along with larger businesses, use Section 1031 to transition into facilities and locations that more efficiently meet their needs, instead of being tax-locked into yesterday’s inefficiencies. These exchanges allow taxpayers to shift to more productive like-kind property, change geographic location, and diversify or consolidate holdings.  

Like-Kind Exchanges Stimulate Needed Capital Investment

As a result of the economic upheaval from the coronavirus pandemic, large amounts of retail, office and other commercial real estate properties will require significant renovations or repurposing to meet post-pandemic business models and tenant needs. Like-kind exchanges encourage transitions to buyers who can make the capital investment to bring properties to their highest and best use, thus improving communities and increasing the local and state tax base.

Read full article here.

Leave a comment