The Tax Savings of a 1031 Exchange

A lot of people think rentals are these like awesome tax saving things. Well, it's not that simple. The depreciation is in a free gift. It's a non cash expense. You're not actually paying anything for depreciation, yet you get the deducted as an expense. When you eventually sell the place, all the depreciation that was or could have been expense throughout the years gets recaptured. So keep that in mind. This is where 1031 exchange comes in. I don't want to make this a topic. But again, if you have a rental property, you sell it and you roll the proceeds into another rental property under certain parameters and timelines. We'll go through some of those