Dr. Friday dives into the benefits of like-kind exchanges, explaining how they allow investors to defer taxes when swapping similar assets. While not applicable to primary homes, these exchanges are ideal for rental properties and business investments. She outlines how gains from sales can be reinvested tax-free into similar properties or businesses, helping to diversify portfolios while maintaining tax advantages.
Transcript:
G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.
I don’t think people talk enough about like-kind exchanges. Now again, this really does not apply, let me put a caveat, no, it doesn’t apply to your primary home. This is actually people that have other properties, maybe rental properties or business investments, and they exchange it for another like-kind, either another business, so I have a business, I want to sell this business, I’ll take the profit from that, all the gains, not pay a dollar tax, go buy another business, and therefore I’ve expended or I can buy multiple businesses for the same money. It’s a way of diversifying, but keeping the tax dollars all together and not pay taxes today. So if you need help with understanding that, 615-367-0819.
You can catch the Dr. Friday Call-In Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.