July 9, 2015 (from left to right): Ryan McCormick, vice president and counsel with The Real Estate Roundtable; Milena Petrova, finance professor at Syracuse University; David Ling, finance professor at the University of Florida; and Danielle Hale, director of housing statistics with the National Association of Realtors, discuss the results of research on like-kind exchanges.
NAREIT co-sponsored an academic study released July 9 illustrating the positive effects of like-kind exchanges for the real estate sector.
David Ling, a finance professor at the University of Florida’s Warrington College of Business, and Milena Petrova, a finance professor at Syracuse University’s Whitman School of Management, authored the report, which examined the economic impact of repealing or limiting like-kind exchanges in real estate. The study covered more than 1.6 million transactions in the course of an 18-year period and found that like-kind exchanges result in increased investment, reduced holding periods and lower leverage levels.
The researchers also determined that in nearly 90 percent of cases, users of like-kind exchanges did not defer paying tax indefinitely.
CLICK HERE for more information about the study.
(Contact: Dara Bernstein at dbernstein@nareit.com)