An IRS provision letting investors defer capital gains tax by rolling sale proceeds into a like-kind property.
Sell a rental, buy a bigger one, pay no tax today. Strict deadlines apply: identify replacements within 45 days and close within 180. The tax is deferred, not erased.
Example: Deferring tax on a $302,000 gain at 25% keeps ~$75,000 working in the next property.
FAQ
What is 1031 Exchange in simple terms?
Sell a rental, buy a bigger one, pay no tax today. Strict deadlines apply: identify replacements within 45 days and close within 180. The tax is deferred, not erased.