Can I defer taxes on investments through a 1031 exchange?
Curious about Taxes Investment
Yes, a 1031 exchange, also known as a likekind exchange, is a taxdeferred exchange that allows an investor to sell one investment property and use the proceeds to purchase another likekind property without paying immediate taxes on the gain from the sale of the first property. To qualify for a 1031 exchange, the properties involved must be used for business or investment purposes, and the transaction must meet certain requirements set forth by the IRS. It's important to note that a 1031 exchange does not eliminate taxes owed on the sale of the original property, but rather defers them until the investor sells the replacement property.