A 1031 exchange allows an investor to sell their investment property and defer capital gains taxes as well as depreciation recapture taxes that would normally be triggered on their sale, if they agree to use all of their sale proceeds to purchase one or more new properties of equal or greater value. In total, taxes can be up to 40% of your real estate profits. A 1031 exchange applies to any property that isn’t your primary residence and can even apply to primary residences if they have a home office, Airbnb use, or business use. There are several key rules and regulations that you need to know before you open an exchange. Read more….