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Tag: 1031 exchange requirements

Understanding 1031 Exchanges and Property Requirements

A 1031 exchange, or the like-kind or tax-deferred exchange, is a real estate transaction allowing you to defer capital gains taxes by exchanging one investment property for another.

In 1031 exchanges, the proceeds from the initial property are reinvested in a new property, allowing you to defer paying capital gains taxes on the profit from the sale of the initial property.

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