Starker transaction

Starker transaction

Named for T. J. Starker, who successfully claimed the benefit of IRS like-kind exchange and tax-deferral rules even though there was a significant time lapse between selling one property and buying the replacement property. Section 1031 of the Internal Revenue Code establishes a safe harbor for similar transactions,guaranteeing the IRS will not contest a delayed exchange if all parties follow the rules exactly. See 1031 exchange.