The infamous 1031 exchange 2024

According to Forbes Advisor, a 1031 exchange, also known as a like-kind exchange, is a tax-deferred strategy that allows investors to defer capital gains taxes on investment properties. The exchange involves selling an investment property and reinvesting the proceeds in a new one. The IRS wants to tax the capital gains tax on the sale of a commercial or residential property at a gain, but a 1031 exchange allows investors to defer this tax and reinvest that money into a different like-kind commercial or residential property.