Investors who are worried about their tax liability should seriously consider some of the benefits of a 1031 exchange. This allows property owners to avoid paying capital gains taxes by reinvesting the earnings that are gathered from the sale of real estate.
Holding onto the gains you’ve earned from selling one property will allow you to keep more cash in your pocket even while you continue to invest. It’s an effective investment strategy, and it can even help you diversify your real estate portfolio.
We’re often asked about the benefits of a 1031 exchange and how to execute this type of transaction. Today, we’re explaining how this works.