It has been said that the only things certain in life are death and taxes. Real estate investors cannot cheat death. However, they can defer taxes on the gains from the sale of their real estate using Section 1031 of the Internal Revenue Code.
IRS 1031 Exchanges Explained
September 10, 2012 by
One of the largest expenses real estate investors incur when they sell their properties is the capital gains tax. This is a tax on any profit you made from the sale price of the property minus the purchase price of the property, also known as your “basis” in the property.