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Key Takeaways
- A like-kind exchange is used when someone wants to sell an asset and acquire a similar one while avoiding the capital gains tax.
- Like-kind exchanges are heavily monitored by the IRS and require accurate bookkeeping to ensure that no tax penalty is incurred.
- Savvy sellers can use the like-kind exchange to defer other specific types of gains, such as depreciation.
www.investopedia.com/terms/l/like-kind_exchange.asp2023 Guide: Understanding 1031 Exchange Rules in Connecticut
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