What Is a
A 1031 exchange is a process through which one can sell an investment property and buy another while deferring capital gains tax. Typically, when one sells an investment for profit, they have to pay capital gains tax. Real estate is no different.
However, section 1031 of the tax code allows for an exception that when followed, permits that capital gains tax to be deferred. It’s a great benefit that sounds easy, but of course, there are rules
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