Starker Exchange

A type of tax-deferred real estate exchange with a delayed term. This option gives the seller more time to find a like-kind property. For a Starker exchange, the proceeds from the sale of a property must go into an trust company escrow that the seller must not control. The seller then has 45 days to find and 180 days to purchase a like-kind property, which is then bought with the escrowed funds. For more information, see the "All About Capital Gains: Tax-Free Exchanges" article in the "Real Estate Investing" section.

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