What is a 1031 Exchange?
1031 exchange is when you have an income-producing property and you sell it to buy another income-producing property with the objective of differing your taxes.
It’s like kicking the tax can down the road eventually someone going to pay it but not anytime soon as long as you keep buying income-producing properties.
So if you’re someone Who is about to sell an income-producing property you need to start thinking about what your objective is before that property closes because as soon as you close you only have 45 days to identify three potential properties you are going to exchange into.
So you need to strategize and ask yourself do I want more doors? Meaning, instead of having a duplex, getting a four Plex, which means more income.
Do I want more cash flow? or do I just wanna upgrade to a better property and break even?
If you want to know more, drop a comment below or send me a DM