You’ve probably heard of Section 1031 like-kind exchanges: they enable you to defer tax on the gain from the sale of business or investment real estate (or other property) by purchasing like-kind replacement property within specified time limits.
People use Section 1031 exchanges all the time to avoid paying tax on appreciated real estate for years, potentially forever. Wouldn’t it be great if you could do the same thing with all or part of your ownership interest in an entire business?
You can’t use Section 1031 to defer taxes on the sale of an ownership interest in a corporation or an LLC taxed as a corporation. But if you have the right type of corporation, ... Log in to view full article.