A 1031 exchange is when you swap one investment property for another. Swaps are taxable sales but if you meet the requirements of 1031, you may not even have to pay any taxes on your home.
In a way, you’re changing the form of your investment without recognizing a capital gain which allows the investment to grow tax-deferred. You can do a 1031 exchange as many times as you’d like and can roll over the gain from one piece of investment real estate to another.
There are a lot of moving parts to 1031 exchange and the team at Peak Financial can help you navigate them along the way.