1031 Exchange and Depreciation Recapture

[Colby Shelhorse]

Let's say I sell a property that I have owned for 10 years and then use the 1031 Exchange method and buy another property of the same type. Does this method wipe away all depreciation recapture taxes for the property that was sold and you start new with the new property or does the recapture tax just get deferred down the line until you sell without doing a 1031?

[Bill B.]

@Colby Shelhorse

As the famous @Dave Foster once said (Famously). You can you can live tax deferred but you have to die to be truly tax free. 

If you keep exchanging and die before you finally sell, then all those taxes are wiped off the slate and the person you leave it to owes nothing.