This is one of the secrets to building wealth through real estate.
The 1031 exchange is a major tax benefit that defers capital gains tax. This is how all of those real estate investors grow their real estate investment portfolios so quickly and successfully.
Through the 1031 exchange, when you sell one real estate property and use the profit to buy another investment property, you can defer capital gains taxes.
Capital gains taxes can take a serious chunk out of your real estate investment–up to 35% for combined state and federal. Smart investors defer these taxes using the 1031 exchange.