Video: Like-Kind Exchanges

In this lesson, Nick Palazzolo, CPA, demystifies like-kind exchanges—a complex yet often tested topic that enables taxpayers to defer capital gains taxes on exchanges of similar properties used for business or investment. Nick breaks down the critical components, like the definitions of realized and recognized gain, and the basis of the new property acquired. Combining clear-cut explanations with practical examples and a dash of humor, he ensures that the IRS rules on boot and timing strategies for property identification and receipt are no longer puzzling. By the end of the lesson, Nick ensures that concepts like deferred taxes, boot, loss recognition, and ineligible exchanges for tax deferment are crystal clear, setting the stage for success with practical application and ample opportunities to practice.