Legal Question in Business Law in New York

Section 1031 of the Internal Revenue Code provides a way for people to defer income taxes when investment property is sold and a different investment property is purchased. This is commonly known as a "like-kind" exchange, and it's only available for investment properties, not your primary residence. So if you owned a building with rental units, you could sell that building and purchase a shopping center, for example. These types of properties are considered "like-kind" under the rules. But your home doesn't qualify for this preferential treatment because it's not an investment property. Transferring your home from your own name and into an LLC won't convert it from a personal use residence into an investment property. Good thinking though!

Good luck.