1031 Exchange

A 1031 Exchange is a tax strategy that allows real estate investors to defer paying capital gains taxes when they sell one investment property and use the proceeds to buy another similar property within a specific time frame. This helps investors grow their portfolios without immediate tax burdens, as long as they follow IRS rules. The process involves identifying a replacement property within 45 days of sale and completing the purchase within 180 days. It’s a valuable tool for those looking to expand or upgrade their real estate investments while preserving more of their capital.