A more thorough explanation:

A Starker Exchange is a type of tax-deferred exchange, also known as a 1031 exchange. It allows a property owner to sell their property and use the proceeds to purchase a like-kind property without paying capital gains taxes on the sale. The name "Starker" comes from a court case in which T.J. Starker successfully used this type of exchange to defer taxes on the sale of his timberland.

For example, let's say that John owns a rental property that he purchased for $200,000. The property has appreciated in value, and John now wants to sell it for $300,000. If he were to simply sell the property, he would owe capital gains taxes on the $100,000 profit. However, if John uses a Starker Exchange, he can reinvest the $300,000 into a like-kind property, such as another rental property, without paying taxes on the sale of the first property.

Another example would be if a business owner wanted to sell their current office building and purchase a larger one. By using a Starker Exchange, they can defer the taxes on the sale of their current building and use the proceeds to purchase a larger one without incurring a tax liability.

Overall, a Starker Exchange is a useful tool for property owners who want to sell their property and reinvest the proceeds without paying capital gains taxes.