Why Use A 1031 Exchange?
To make it simple, under the Internal Revenue Code Section 1031, the gain from the initial sale of real estate is not taxable as long as you use all of the proceeds for the purchase of the replacement property.
By deferring the capital gains tax, you can use 100% of the untaxed proceeds from a property sale to buy new property.
Benefits Of A 1031 Exchange
Defer Capital Gains
Potential for consistent income
No limit on how many times you can use it
Professional management
Additional portfolio diversification
Option to use a DST structure