You can exchange real or personal property for other real or personal property and not have to report the fair market value of the property you gave up in the exchange as a taxable event for income tax purposes. This can be a tremendous tool to defer (not save) income taxes on the transfer of appreciated real estate assets. These transactions are more complex than most advertisers for their services might lead you to believe so use a reputable company and skilled real estate attorney to be sure that the transaction is carried out properly. Also, before committing to a tax deferred like kind exchange explore all your options. Will selling and paying the tax actually better serve your needs? Might a charitable remainder trust prove more valuable?
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