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Avoiding federal tax liability when selling commercial real estate

from Crain's Cleveland Business

In most cases, an investor who sells commercial real estate will be required to pay tax on any gain resulting from the sale at the time of the sale. If the real estate has appreciated in value during the investor’s ownership, the tax liability resulting from the transaction can be significant. The Internal Revenue Code, however, provides investors with the means to defer tax liability. One such method is commonly known as a 1031 like-kind exchange. more

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