1031 exchange

Definition

A tax-deferral strategy allowing investors to sell a property and reinvest the proceeds into another 'like-kind' property without immediately paying capital gains taxes. It's the IRS-approved version of kicking the can down the road.

Example Usage

By doing a 1031 exchange into a larger apartment building, I deferred $120,000 in capital gains taxes and leveled up my portfolio.

Origin

Named after Section 1031 of the Internal Revenue Code, established in 1921

Fun Fact

You have exactly 45 days to identify replacement properties and 180 days to close—deadlines that have caused more investor panic attacks than any market crash.

Source: IRS tax code and real estate investment terminology

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love letter

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deposit

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deal fatigue

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