What is Starker Exchange?

Starker's Stock Exchange, also known as the exchange of tax deferred at 1031, is an excellent way that the investor can postpone taxes from his capital gains. The replacement allows the investor to sell real estate and then take advantage of the proceeds to purchase another property and pay immediately to capital revenue taxes immediately. The Starker Exchange Rules are written in the 1031 Internal Revenue Service (IRS) section. Both features must be similar or natural. For the purposes of IRS, all real estate property are considered to be in this way if they are for business. For example, a single family house can be replaced with the soil and the condomine can be replaced for a golf course. The properties and replacement properties must be identified 45 days after closing the initial properties. The proceeds from the sale must be placed on a special custody of a qualified intermediary and must be used to purchase a substitute property. The closure to the substitute property must occur within 180 days of the closure of the first property.

The Starker exchange came from a number of court cases concerning the family of the Starker family. The last case was the appeal case filed by ie. Starker at the Ninth District Court in 1979. The decision on this case removed the previous requirement that the replacement of real estate should be made simultaneously.

If you make an exchange of Starker, you must file a form 8824 with the IRS per year in which the exchange takes place. Wiring in Starker exchange does not exclude you from paying taxes from your capital gain, but simply allows you to postpone them. Since the rules and regulations are very complicated, it is always advisable to talk to a financial advisor or a lawyer specializing in tax or real estate.