A 1031 exchange, named after Section 1031 of the U.S. Internal Revenue Code, allows investors to defer capital gains taxes on the exchange of like-kind properties. The process involves selling a property, identifying a like-kind property within 45 days, and completing the purchase within 180 days. This strategy is used by real estate investors to reinvest the proceeds from the sale of one property into another, deferring the tax liability and potentially enhancing their investment portfolio’s growth.<\/p>\n\n\n\n