The 1031 exchange qualifies for the sale and purchase of investment real estate to defer all of the tax.

If you are new to real estate investing, a 1031 exchange creates a lot of risk for you. 

@Eric Amundson, You can't do a 1031 exchange into non-real estate passive investments because it has to be investment real estate for investment real estate.However, there are syndications that do qualify for 1031 treatment because of how they are structured, such as UPREITS (Real estate investment trust), or DSTs (Delaware statutory trust).

What write offs/loopholes does anyone know of to help me in this situation. 1031 exchange is out of the question.

They couldn't deliver one out of the two properties for my 1031 exchange.

Happy to chat more and exchange insights.

., The answer to avoiding paying tax on profit and the depreciation recapture is to do a 1031 exchange.

@Christopher Cava, kudos for taking advantage of the 1031 exchange to expand your RE portfolio.

The property isn't eligible for conventional financing due to HOA and occupancy ratios, but here's what made it work:🔹 DSCR loan was used — no tax returns required🔹 7-day STRs permitted by the HOA🔹 Closed $10K under appraised value🔹 Fully financed, and still cash-flowing from day oneThe buyer was doing a 1031 exchange and wanted a turnkey rental that could hold up even if short-term rental regulations shifted.

@Brady Tome, The 1031 exchange is only for property that is being held for investment.