I intend to buy a property and rent it out. How does the 1031 exchange works?
@Duc Ta it's definitely how you start a great career as a real estate investor! The 1031 exchange is used when you sell a property that has significant gain or depreciation expense you would have to recapture. You sell the property and using the 1031 process you purchase new investment real estate and get to indefinitely defer all tax and depreciation recapture. You're on to a great tool. But you don't need it just yet :)