Section 1031 exchange is a very valuable type of tax-deferred exchange for Idaho investors and Idaho business owners. Under this rule, if you “exchange” one property for a like kind, you do not have to report any gains or losses on the exchange. Even though the 1031 is called an exchanged, it is referring to the sale of one property and the buying of a replacement one.
Like-kind property may include:
- You can exchange an Idaho business property for an investment property, or the other way around.
- Unimproved real estate for an improved one.
- Cars, light-duty trucks, crossover, sports utility, minivans and cargo vans are all like-kind.