What is a 1031 tax-deferred exchange and do you qualify for one? That's the topic of the day and we're luckily joined by one of our preferred real estate closing attorneys, Andrew Luftig from Chaves Perlowitz Luftig LLP law firm.
Broadly speaking, a 1031 exchange (also called a like-kind exchange) is a swap of one investment property for another. While most swaps or exchanges are taxable as sales, a like-kind exchange will either have no tax or limited tax due at the time of the exchange, and therein lies the benefit of this tax strategy.
If you're interested in understanding the fundamentals of a 1031 tax-deferred exchange, then this episode is a must watch!