Intro to Investments
A 1031 exchange is a tax-deferment strategy in real estate that allows an investor to sell a property and reinvest the proceeds into a new property while deferring capital gains taxes on the sale. This process is beneficial for real estate investors as it enables them to grow their investment portfolio without the immediate tax burden typically associated with selling property. By following specific IRS guidelines, investors can continue to invest in like-kind properties, promoting long-term growth in their real estate investments.
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