In this interview excerpt, Anthony Goldner asks for a brief definition of a 1031 exchange. The speaker explains that a 1031 exchange allows an investor who sells an investment property to defer capital gains taxes by swapping the sold property for another, typically larger, investment property. The capital from the sale is transferred into the new property, enabling tax deferral and facilitating property upscaling.
So real quick for the viewers who don't know, can you really just quick explain what the 1031 exchange is?
That's you. Well, basically you, when, uh, when you have an investment property, once you sell it, you're subject to capital gains tax. But if you do a, what's called a 1031 exchange, you can actually exchange that property for a bigger lifetime property and transfer all the capital into that property and, you know, defer the capital gains.
