Two real estate investors discuss 1031 exchanges, the tax trap of depreciation recapture when you eventually sell, and why the only way to avoid those taxes entirely is to die and pass assets to heirs through a trust.
The problem is, is that as you continue to do this over decades and decades, that amount of money that you have amassed is so big that eventually it gets harder and harder to find projects that actually qualify to be able to take all that capital in. So, and, and when you finally go to take the money out, you actually have to take back, capture all that, those tax benefits and depreciation, and you have to ultimately pay tax at some point where.
The caveat to that is the only way to avoid that is to die and leave it to your family and a trust.
